If it is hard to lie in a digital world, what will happen to story telling?

Today I presented at the BCS privacy day, following me was David Birch and David Lund from EnCoRe  #bcsprivacy

It occurred to me during the presentations that keeping all data makes everything factual in the future.  Apparently we want control, traceability and evidence.  How much of this requirement (to keep all data) is this driven because we can collect and store it or because someone has sat down and done the analysis that says that there is real value in doing so? (ignoring the fact that Government wants to do it, however WikiLeaks could change that thinking as well)

I believe that there is an important and deeply human characteristic which is story telling.  To tell a story, that you remember and pass on, requires that you are allowed to have some leeway or ability to ad-lib as the real story becomes a slow evolution to the moral.  

Providing a lame excuse would be very dull if everyone had all the facts, why should we store everything and what real value will it bring and could the same be achieved by some other route?