"We should be teaching users cookie control, plugin and request blocking as part of using the web, not an 'install once, forget forever' solution that doesn't work."

Doomed to failure. Users shouldn't need to know this stuff, and the vast majority never will. Even if it is taught and tested at school. There are plenty of things we could do to improve privacy, but much of it will cause the major browser vendors to make less money, so is unlikely to happen.

1.) Tie all cookies to the domain in the address bar. No more third party cookie tracking.

2.) Tie all cache entries to the domain in the address bar. Gets rid of numerous tracking tricks at the cost of increasing bandwidth usage a little.

3.) Get rid of HTTP referrers. Completely. It's none of your business which site I was on before yours.

These three things alone would make a huge difference. It's the low hanging fruit that we need to get before we tackle the more difficult problems.

I think there's too much money involved though. The above improvements would definitely hit Microsofts and Googles bottom lines. But hey, there's no problem with insanely rich advertisers controlling the major browsers right. No conflict of interests there.

EDIT: I agree with all of your other points regarding DNT. Just not the user education one.

EDIT2: Another one:

4.) Make all cookies, session cookies. I configured my browser to delete all cookies on exit ages ago, and the web still works fine. I might have to type in my username each time I go to login to sites instead of having it auto-filled, but that's a good trade off. Besides, browser plugins like LastPass solve that problem better.