For (3), there’s a pretty good chance just from code rot that your “settings” may not always work. Certainly not if some company’s entire business model seems to depend on the more anti-consumer values for “settings”, you can bet they will not heavily invest in testing their accuracy.
And the real problem for privacy-related settings is that if they ever fail to protect you, even being buggy for just a short period of time, your information is then out there. Leaked. Gone. Even if you close the barn door, the animals have left. It is the type of software that has to be working 100% of the time to really protect data.
So I don’t really want privacy “settings”, I want privacy, period. That should be the default and only behavior, where the user has the only keys.