What he is doing is a good first step, but the whole culture needs to change.
That is a lot of unknowns, each demanding that the consumer is 100% aware or they are responsible for the result. This then leads to apathy, where we care and not care at the same time. A culture that makes people feel that they do not possess the level of skill required to confront daily life is a bad culture, creates depression, and is general bad for society at large.
But I don't have time to understand and manage the confidentiality of my IT; I have no hope. Even when I try to learn about one product's or service's confidentiality, the information available is often vague, incomplete and subject to change at any time (per their license agreements). I have so many products that I have no hope of keeping up.
Users clearly care. The market for privacy-oriented products (e.g., Snapchat), demand for privacy from existing products (recognized and responded to by Facebook and others), and the impact on reputation for companies who violate it (e.g., Uber) all have grown significantly. Surveys of the American public support these observations.
I think reasonable people could debate both of those points. Making either ethical judgements or PR/branding decisions based only on the minimal standards required of you by law is always a dangerous path to tread.
This is only partly for the reason you give, that some people will sue you now. It's also partly because of the other consequences. Some people may sue you later and with more success, possibly after the rules of the game have been changed by subsequent legislation or precedents. Worse, some people may not bother suing you at all and may simply vote with their wallet and/or encourage others to do so, and that is an attack against which a business is given little opportunity to defend itself.
I mean, you're absolutely right about how business people seem to really really hate people who make commodities, even though it's in the buyer's interest to buy things that are sold as commodities (e.g. goods and/or services where switching vendors is easy)
It's a lot like how business people get all hostile when you talk about competing on price. "It's not about the money!" they shout, like overdressed, aging hippies. But it's a transparent lie, and I think largely harmless.
but... yeah, as far as I can tell, the hostility starts and ends at saying mean things (and, you know, not giving you money, but I don't really live in the universe where investors give you money, so likely that is observer bias.)
I think it's just the general kind of hostility you get from co-workers, in most industries when you make them look bad by working harder than they do.
Works for the 10 largest software companies, most of which sell to businesses.