While I completely agree, I think there's a more fundamental problem.

Imagine Facebook's T&C said, "We will spy on you in any and all ways we can imagine. We will take every piece of information we can possibly collect about you and use it however we want. You have no rights and if you ever sue us, you agree that we win by default. We have the right to add whatever we want to this agreement, whenever we want with immediate effect." How many people would read it, and decide not to install their software or use their site? For sure some might, but for the most part I think people would mostly just shrug and click next.

Many people don't seem to understand the value of things unless it hits them directly in the wallet.