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It's all about signal to noise ratios. Being closer to the object in question increases signal and decreases noise. Sensors are getting better all the time though, so it wouldn't surprise me if one day cubesats can snap a decent picture of a small object (person).
Season 2 of Jack Ryan on Amazon has something to do with orbital imaging. I haven't finished so no spoilers please.
Drones make sense for surveillance since the cost is low, and the ability to repair or upgrade their equipment is very easy. They can be made very fuel efficient for long loiter times, especially since you don't have to design them to carry people.
Technology always tends to get used first for destructive purposes before it gets used for constructive purposes.
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