> I think where we go wrong is to allow the conversation to revolve around what evil corporations are doing with our information, rather than what the evil government is doing with it.
I think it would be wrong to ignore either. Especially since most of the data the government gets is from corporations.
> Corporations showing me better-targeted ads is the least of my troubles.
You're right about that. That data sure isn't only used for ads. Companies use it to decide what services you're allowed to get and under what terms. The policies a company tells you they have are different from the polices they tell others they have. Companies use it to set prices so that what you pay can be different from what your neighbor does for the same goods/services. Companies even use that data to determine how long to keep you on hold when you call them.
Employers use it to make hiring decisions. Landlords use it to decide who to rent to. It's sold to universities who use it to decide which students to accept or reject. It's sold to scammers who use it to select their victims. Extremists use it to target and harass their enemies. Lawyers use it in courtrooms as evidence in criminal cases and custody battles. Insurance companies use it to raise rates and deny claims.
The data companies are collecting about will cost you again and again in more and more aspects of your life. Ads are absolutely the least of your troubles.