well put together and thought out post, thank you for sharing.
You are absolutely right, Police work will have to involve infiltration.
Much better that way, in the end of the day. If they think their hidden, so much the better. If everyone is forced into transparency, they wll just go deeper into secrecy.
I'm all for forcing anyone on the public dole, Right from heads of state on down into transperancy, that would clean their acts up :-)