I would bet a guess that privacy in NK is actually better when you're purely looking at a digital point of view.
After all, many people there won't have access to such technology. They'll be off the grid unlike most of us.
Of course that doesn't actually give them privacy, I'm sure that there's plenty of 'friendly' neighbours spying on each other for a few bucks, basically stasi style.
And also this watermarking isn't all that different from our browser fingerprinting and mega data collection. It's just a cultural difference. The NK government wants their citizens to know they're being spied on. Whereas ours is trying to hide it. Thus more focus on the endpoint device rather than the cloud side.