It's just so ridiculous.
There are services saying they care about privacy and protecting the user, or even signing accords, but then the same ones go and stab innocent customers in the back. Even if they are not selling or sharing data with third-parties, just by collecting a lot of data on someone is bad... Every single service in the world can be breached one way or another, there is no silver-bullet. At all. There will always be someone/people out there with more experience, knowledge, luck, determination/motivation who will eventually accomplish their goal of corporate espionage, server breach, account login brute-forcing and other things. Therefore, just by storing lots of data for whatever purpose is leaving the customer vulnerable in the first place.
People must think I am some paranoid privacy person by now. No, I'm really not. I am just very concerned regarding the damage that can be done to honest and clean customers of services should their account get hacked by someone who decides to download their digital life since 2008. Why? Black-mail, identity theft for framing, targeted attacks...
Uber was hacked awhile ago, then they covered it up after paying a ransom and were eventually exposed. That for example... It wouldn't have been so damaging that they had been breached if they hadn't collected so much data in the first place. The fact that they collected the amount of data they did is what made the attack damaging to their customers, it leaves their customers vulnerable and the worst part about it is that the customers likely cannot do anything about it later down the road.
There's plenty of examples out there on the web.
If a company is serious about protecting their customers and the data of their customers then they should be focusing on reducing the amount of data collection, reducing the amount of sharing of data and re-assessing which data they are sharing with third-parties, cleaning out old data, etc. The less data that is available, the less damage that is done when data is exposed.
Services require data collection sometimes to improve their service and introduce new features, I understand that. However, that doesn't mean you need to hide the important facts in a huge privacy policy contract and keep it stored forever, you should let the customer decide and when to delete that data from the servers and all backups of it, no questions asked... IMO.
So not all services collecting data are monsters, most companies DO collect data. There's no way to use services and stop data collection really, especially not for a normal user. And a user might WANT to allow it to use a feature they helps them, it depends.
However, the more data that is collected and stored, the more vulnerable the customer becomes. Whether they agree to it or not is irrelevant, it doesn't change the fact that they become more vulnerable as the service collects more data and stores it. Regardless of encryption.
[Personal opinion, same as the previous post]