

Take a look at trusted computing. The issue is someone modifying your software to collect more data than you intend, right? Make it so stock versions can’t talk to modified versions. This involves a fair bit of cryptography that goes way above my head. But for a technical solution, that’s where I’d start to look at.
For the time being, offer it exclusively as SaaS, while you figure out a game plan to solve this conundrum.
I share your optimism to a point. If it convinces one municipality to not adopt Flock, it’s a victory. That said, I can see a corrupt government issuing an alert to track a car down. However, if done correctly, this action will be undeniable and visible, and it can’t give them heavy information.