Well...what did you think would happen?
privacy as a legal right is complex and ill-defined -- if you look just at CCPA or GDPR, these are big laws with large compliance costs with the risk of benefiting incumbents like FB/G
if your goal is to develop a robust case law for privacy in the united states, pay for privacy accomplishes that because if I pay a dollar for 'private mode', and the vendor breaks our contract, I can absolutely sue.
we also don't know which privacy features users want. hard to write laws without market research, and you can't do market research if there's no market for a good.
another issue is that if privacy laws 'demonetize free tiers', you're effectively paying for privacy anyway. 'pay for privacy' vs 'privacy as right' may be a false choice.
I'm not saying market privacy is fair on the face of it, but it may be more effective than the alternatives.