In other words, your assumptions don't factor in the link between the myriad of web services now available, and the freedom people have had to provide services on the web.
The government has a constructive role to play in the market, in provisioning tools and information to empower people to maintain their privacy, which market players are not economically incentivized to provide in sufficient quantities.
That would take the form of public funding for development of anonymity technologies, public directories comparing services and their abidance to voluntary data protection standards, and possibly public service announcements educating people about what data they disclose while browsing non-anonymously, or browsing particular types of websites, and how that data can be shared and used by private data collectors.
What the government should not be doing is imposing Big Brother laws that violate the privacy rights of companies in relation to the data they store, which properly understood, belongs to them, regardless of who that information is pertaining to, and violate private property rights by regimenting how web service companies will operate.
Centrally planning the web economy in the manner of imposing regulations like the GDPR is so ridiculously misguided. It is going to destroy innovation, and particularly, business creation.