banning prostitution and the drug war have both proven to be counterproductive.
> The individual is not held sacrosanct,
By you perhaps, but those are the principles of the Enlightenment and modern western society and have served us far better than collectivism.
> especially when he/she acts against the group.
Right, sharing my data with another individual or company isn't "acting against the group" or even involving the group.
> What remains to be decided here is whether the collection of data by "surveillance capitalists" is corrosive enough to society to be forbidden or restricted as well.
Not if you respect individual, natural rights. Furthermore, scientific/medical research, traffic prediction, spam detection, self-driving all are arising out of voluntary submission of data by free individuals. I don't see any sense in hindering innocent, positive efforts out of a desire for retribution against "surveillance capitalists" based on the "guilty until proven innocent" model of preemptive regulation.
Thankfully the principles of individual, natural rights have been codified into the US Constitution to a large degree.