My retort is this, let one student die or seriously hurt themselves in their private areas and that would just be terrible. The UN and by extension the school has a duty to know what is going on; either by putting a nosy RA on the floor who makes random room checks and weekly inspections or what have you or a non-intrusive super sophisticated computer system that simply exists to provide immediate response.
I think that maybe I am not seeing the issue, your (the student's) privacy is maintained but this isn't Clover's home. Besides Clover should be used to living in an environment with CCTV if she is royalty... securing important people is a whole industry. I am just not seeing the issue on that level; sure she should be afraid of someone taking an embarrassing photo but that isn't what Amy from my understanding does. She isn't recording this stuff to go look at later and eat popcorn. She is observing reacting to potentially dangerous situations, informing other students/personnel that blank is looking for them, assisting users, and well being a soulless machine designed to provide non-obtrusive security.
If anything creepy mind reading girl is just bad, Amy as far as we know does not think, she reacts based on a sophisticated set of protocols to protect the students. Like Victim said this is a service being provided by the UN any good parent will feel safer knowing that their child has access to immediate assistance if harm comes to them. Considering the peculiar students at the school, I think it isn't Draconian it's good sense and actually less obtrusive then tons of staff walking around making sure we don't get lost, hurt, or god forbid, get into something that causes serious if not fatal harm.
In-game I am all for it, but out-of-game I am not seeing the issue.