Privacy is the corollary to the very true "knowledge is power". We don't fear others knowing our secrets as much as we fear the power that the knowledge of our secrets grants over us. That power is primarily granted through mechanisms like shame, but you're right that there are other methods by which knowledge yields power. Dismantling those mechanisms is the key to robbing knowledge of its power, and ultimately to eliminating privacy as a concept.
Technology protects privacy as much as it chips away at it - consider the arms race that is encryption; a hack finds a security flaw and a new security patch is developed. It's not Technology vs Privacy - it's technology trying to keep up with the pace of what people want.
This is very true insomuch as it applies to "man-made" communications. Datagrams of various types that we craft in order to communicate with eachother using agreed-upon protocols. They're languages, in a way, with a translator on either end bringing that communication back into something you can read.
This breaks down, though, when we aren't looking at purely man-made communication. Can you encrypt all speech? All light that bounces amongst objects? Can you encrypt your thoughts from someone who is so good at looking at your face and body that they can read your mind from biological indicators?
We have the idea that a movement, a word spoken, or a hand gesture should be "private" if we do it inside a box nobody else has access to. Yet every little movement we make throws off incredible amounts of data into the universe. Radiation across an entire spectrum of wavelengths, biological reactions that indicate what you're doing, when, and why. If you could collect all this an analyze it, you could get a very clear picture of what is going on inside that box even though you can't see through it on the visible spectrum.
When Average Joe has a device to see into that box, to sense that incredible amount of data thrown out by every thing we do, and to analyze it on the fly...what is privacy? When you become aroused from seeing someone in public and everyone around you instantly senses the physiological indicators...what is privacy?