I never got this argument. In mathematical proofs, reducto ad absurdum is an acceptable method of showing an assumption false. It shows that a statement ("Users agreed to TOS, so it's not malign") has an exception. The example is extreme to make sure nobody can argue the statement's still valid.
He's not saying the punishment should be on par with murder. He's just saying there is a line of moral acceptability, but where it lies is up for debate.
* If my privacy policy is a copy of HIPAA, that's an ethical privacy policy.
* If my privacy policy is as Google's here, it seems unethical without clear informed consent (which a disclaimer in a novel-long privacy policy doesn't provide).
* If your privacy policy says you'll collect incriminating information about me, and sell it to the highest bidder for use in blackmail, it's unethical even with attempts at informed consent.
Analogies need to be analogous. Counterexamples can be extreme (and it is often helpful if they are; then they're obvious counterexamples).
Please take a minute to reread the discussion.
Coincidentally, I've noticed a pretty consistent pattern of downvotes on anything criticizing Google on Hacker News. Either a lot of readers from Google who drank the cool aid, or astroturf -- I'm not quite sure which.
You kinda had me until you lost me here. Analogies need to make sense. If you have to go this far with your analogy then that says more about your own argument than the other side's.