> I think it's very fair to say that your average user absolutely does not care about privacy past catastrophic and specific leaks or revelations based on their own private data.
I don't think that is "very fair to say." For instance, you might also claim that "you average citizen" does not care about having a right to a fair trail and a whole host of other good things. If you have any evidence to back up your assertion, it's probably confounded by interference from people's other priorities and problems.
To get a truly accurate sense of how much "your average user" cares about privacy, you need to control for both the ignorance of some users and the likely sense of helplessness of others. It's weaselly to say that someone with undiagnosed cancer doesn't care about having cancer, just because they don't know they have it, for instance. To truly understand how they feel, you have to tell them their diagnosis, and maybe even explain cancer and its implications to them.
> I think we'd be much better off instilling a higher value for privacy than we'd be trying to legislate and regulate the problem away. Companies will find ways to skirt legal measures, but an evaporating user base cannot be ignored.
You could make the same case against antipollution regulation, and it would be just as weak as you argument against privacy regulation. Your proposed solution is fatally undermined by a collective action problem [1]. The solution to the problem of companies skirting legal measures is to either amend the measures or sanction the skirting of them -- both things that are often done in functioning governments.
[1] https://en.wikipedia.org/wiki/Collective_action_problem