Most people are not aware of the scale of this thing. And it's just getting going. I don't think people's ignorance is a good reason to not protect them. If all the companies are at it (which they are due to lack of regulation and need to compete), then what good is it informing the user. What choice do they have? It's all very well saying they can choose to not use said service/product etc, but that is tant-amount to bribery - and an unrealistic prospect. So what actually happens is people click through the T&C's grudgingly (well, the ones who understand what going on), and downwards we go.
We should not be forced into such a choice and the only way that will happen is regulation.
EDIT: then again, this will never happen, because where do you think the gov gets their information from!