It's a FREE app. If you don't like it, don't agree to the terms and quit using the app.
I get it.
My point in this post is that I (who am interested in privacy and rights online) didn't realise what was going on, how is Joe Average going to know?
I agree that "Joe Average" may not question the free lunch, and that's a problem, but it's exactly the same problem as existing free apps like Gmail, Facebook, etc.
If you're a technical person with an interest in privacy issues, you need to pay a bit more attention.