I disagree. Cynical me thinks this plan would first and foremost give companies incentive to gain control about whichever agency is tasked with setting the sensitivity levels - and make sure all interesting data is classified as "minimum sensitive"...

You could even use this as a tool to gain an unfair market advantage:

1) develop some proprietary (reversable) obfuscation algorithm

2) market the algorithm as "data anonymization" and lobby to get the "anonymized" data classified as insensitive

3) you can now collect the same data as your competitors but have to obey lesser security standards than they have. Unless they purchase the algorithm from you.

4) profit!

But even if that scheme worked, it doesn't seem to protect the end user against things companies intentionally do with the data that are not in the user's interest. Including "intentional data breaches", aka selling the data to third parties. (or getting acquired by a third party)