+1
Even if you're able to watch your kids 24/7, which I find to be absolutely abhorrent, you probably won't outlive them. They'll eventually get away from you and probably experiment in all the ways you never let them.
Life is about learning from mistakes. If you're never allowed to make a mistake, you never live and you never learn. Life is also about relationships and if your kids are never exposed to anyone fundamentally different than they are, their minds and frames of reference will never expand. I happen to find that important.
Meanwhile, people will continue to parent like my parents did, and produce well-rounded children. I was rarely told 'no' because my parents trusted me and as a result, I did things that were trustworthy. That's not to say that I never did anything wrong or never got into trouble, but I was a good kid. And, I've never used any illegal drugs even though it would have been easy for me to do so.
Also, I've never gone to a strip bar, though if I recall correctly my city has the highest amount per capita, and I've never been involved in an orgy, not that I think that it's wrong to be in one.
I became a Catholic when I was in high school—my parents allowed me to have a choice of religion and so never baptised me when I was young. Because of having the choice, I respected my choice of religion. But, I promptly left that religion because no one else took it seriously and I didn't want to be lumped into that group. I also realized that I didn't really believe it and yet I was more reverent and had more respect for it than they did, even though they had been at it longer. I became agnostic and gave up on religion entirely because I think it more noble to be and act good than to do so because a book said so. I don't need the threat of hell to keep me from making bad decisions or being an *******. If there is a god, and he's as just as people want to believe, I don't think that he'd condemn me for being a good person despite not believing in him. If he did, that's retarded, and I wouldn't want to be in that company anyway.
Of course some of the crazy zealots would still call me a heathen. C'est la vie.
In short, I think there's a lot less black and white out there than you seem to think. I turned out fine and my parents never had to snoop on me. That's just something for you to think about.