I do agree that TOS language should be simplified. Something like a simple bulleted list explaining each point of the TOS simply.
I don't think it's a particularly viable business, it might be a good feature of a larger business that was focused on helping customers navigate the complexities of modern life; but on it's own, the value in one instance is too small to motivate purchasing.
As for Path's storage of user contacts; while I find the practice sketchy, especially since I just signed up for Path and had no idea this was happening, but not unexpected especially considering facebook's status as a 'role-model' for privacy issues.
Side-note: Khula Project in its current form is deadpooled. I do plan to relaunch sometime in the future with a project more focused on information distribution.
I find this much more tolerable than Facebook and most search engines' practice of clicking you through an encoded link, which adds latency for no good reason.
This is explained in more detail at https://www.facebook.com/notes/facebook-security/link-shim-p...
I think we need to simplify TOS language and standardize on a set of images to represent privacy, affiliation, and payment terms for a service. I would actually read an at-a-glance TOS summary.
What if you could parse a website's TOS and generate the summary? Startup idea :)