It seems that the brainwashing intended to make one paranoid has been successful
Because you don't have to show your passport or an ID everytime you make a move or buy something, does not necessarily mean that no checks are being made. You just do not notice them, but let me assure you that the authorities know what you are up to.
Be happy as an American to be treated differently than, say, an African or Middle East national.
The risk of a terrorist carrying an American passport is very slim and therefore Americans are checked perfunctorily because they were subject to sufficient checks before leaving their own country
Once inside the Schengen area, there is no passport control, but surveillance is still there. Freedom of movement, however, is most important and does not endanger my life.
Despite all the unnecessary checks in the US, I can tell you that I still feel much safer while traveling in Europe than in in US.