Really? What technology is being misunderstood here? As far as I can tell, the AG is mandating that mobile apps include privacy policies detailing how they gather and collect user information. Given the large number of stories about apps sending user data to 3rd parties or using it for things other than a user may expect/desire that have come out over the past few years, this doesn't seem particularly unreasonable. Now, you may disagree that mobile app developers should be required to post these policies, but I don't see how such a position reflects a misunderstanding of the technologies at play.

I'm also hard pressed to imagine how this is an "assault on product development freedom." If you don't gather any data, it's not too tough to state somewhere "hey, just wanted to let you know that this app respects your privacy and does not collect any usage data or personal information." If your app does gather data, I think it's pretty reasonable to ask for a basic privacy policy to be posted. I, for one, would prefer that mobile apps that send PII be required to explain what and why.

Overall this looks like a reasonable extension of existing laws to include new technologies that have come to prominence in the last few years. Do you think the existing law requiring online services to post privacy policies is an assault on product development freedom? Or is it only because they are extending this to mobile that you are losing your freedom to create software products?