Remember I said "wasn't so bad". Compared to the speculations such as all jobs being eliminated and flawless AI impersonations leading to a total breakdown of communication, yes. It's bad, but it could be a lot worse. And governments can cause fantastic amounts of greater harm just by declaring war. No algorithms required.
2. How are you blind to the fact that it is getting worse? With companies like Deloitte already pushing for things like predictive policing [1] among many, many examples of systems already in place, and already causing harm.
Yes, governments can go to war, but that's reductio ad absurdum. Whatever bad things happen you can always find worse things. Doesn't mean this somehow justifies or nullifies the existing situation.
If this is as bad as it gets then it wasn't so bad.