I think conjuring that book is hyperbole. I don't think making people responsible for the legality of content they host is some crazy oppressive overreach of government power. The laws about what content is legal or illegal are pre-existing, these rules just shift the burden of enforcement in recognition that the government being the sole source of rule on massive distributed platforms isn't feasible. We tried, we failed. The bad guys ruined a good thing like usual.
The laws about what actions are legal or illegal are pre-existing, the telescreens and mandatory neighbor reporting just shift the burden of enforcement in recognition that the government can't effectively police the distributed masses.