It may, depending on the resources required. The thing about arms races is that they can easily impoverish everyone involved for no ultimate gain relative to one another.
Fair enough. I'd argue that in this case the winning move is not to make the potential liability of the data available.
As an 'arms race', the outcomes are very unbalanced.
it does mean doing the wrong this is worse than doing nothing. See: opportunity cost.
Legitimate point.
In the long run, you are dead, at which point you probably don't care as much.