Obviously there has to be some reasonable middle ground, because otherwise no-one can ever provide an online service that offers a genuinely useful facility, say hosting email, even if it's done in a way that is respectful of privacy. But hoovering up someone's entire address book or photo collection or whatever, and then dumping the details into some database of shadow profiles or using it for other purposes that affect the data subjects? At some point, I think you are clearly across the line of what should be considered acceptable behaviour.
1. That data to go exactly nowhere. 2. The company to not profit from the data except by profiting off me directly using their service. 3. That company to not allow anyone else (including me!) to do shady things with that data.
It’s not really complicated. It does make some business plans impossible, which causes some people to make absurd rationalizations.