This already occurs, just ask anyone that works on the maintenance side for an ISP. The law would make it "legal" although it is already being done via the Patriot Act essentially. As it stands now you get flagged whenever you visit certain sites or type in certain words into a search. Once flagged you are on a very long list, the more times you are flagged the shorter the list you get on. Now as for the history of where you have been and what you have done, it is all saved and stored for review if needed. On top of that Facebook is currently working on a project to sell all users personal information to be used by colleges, potential employers, etc. The internet is like a giant information trap, once it is in it can pretty much never be removed. This goes for porn, music, IM's, you name it. Everything is captured, that doesn't mean you will every be tracked down and prosecuted, but it does mean that if you are ever arrested there is a good chance that they are going to look at your online activity. This goes for your phone as well. If you don't already know this, you are pretty ignorant.
