Look no further than TV manufacturers, the moment one of them decided to substitute below market prices with selling people’s data the others had to follow to stay competitive!
If anything, by now I'd say "smart TV fatigue" is setting in, much the same as "smartphone fatigue" a little while ago. Enough people have had these devices for long enough to see all the a-bit-too-clever software get out of date and stop working, and then they start to see the bundled online services and so on as a negative and start asking their more techie friends and family for advice on how to avoid the problems next time.
I can plug an Xbox if I want, or a shield, or a Roku, or an Amazon fire stick/tv, or an Apple TV, or a chrome cast
Just add a bunch of ports and KISS.
I don't understand why the same manufacturers/distributors offering these products don't also pitch them as TVs with well-defined specs and no junk, probably with some sort of "expert"/"pro" branding that makes them look like a high-end choice.
You could pitch one of those, a basic 2.1 home sound system or the like, and maybe a small control/switching box that everything plugs into and that also accepts your source feeds, and you've got a mini home-theatre-style arrangement that could be quite attractive to those who value decent gear but don't have the budget and/or space for a full home theatre setup that would cost at least 2-3x as much for entry-level equipment.
That used to be an obvious possibility, but recent products in this category tend to run variants of Android/Tizen/webOS complete with Wi-Fi to support remote management. There are still a few relatively "dumb" models of commercial displays out there, but they seem to be a dying breed.
The problem is the principle that it's OK for your devices to monitor you at all without your explicit knowledge and consent -- or even with those things, if the market leaves no reasonable alternative and so the consent isn't really consent at all.
I think the change we're starting to see among my group now is that the built-in software is starting to get out of date and not necessarily being maintained by the provider(s) of the service(s) affected, meaning from the user's point of view, the TV just turns on one day and can't connect to service X any more, with no way to fix it.
I'm not sure privacy has much to do with the discontent, because as you suggest, I doubt many people are even aware of the kind of tracking that is going on. When "smart" TVs or related devices get updated firmware and start doing things like injecting ads it really upsets people, but until they have some indication that any of this is happening, of course it doesn't really affect them or their opinions.