Out of curiosity, how do you feel about regulation on the disclosure side of this, and/or informed consent.

For example, if you are not allowed to accept personal data without detailed (and interactive) information about possible uses, perhaps signed. Or if you constrain the actual uses to those that have been enumerated, in full detail, before consent was given.

One the primary "banning" arguments I hear basically boils down to "people don't understand what they are agreeing to", which I think holds some truth.

Yes it does hold a lot of truth, and I am in favor of regulating to ensure radical transparancy (not just in this business). I also think there needs to be protection against switching on opt-out features without notice.

What we cannot do is to completely protect people who don't give a shit from any and all consequences of their own laziness.