Personally, I handover all my fitness information, driving habit information, spending and banking and investing information, my health information, even my location data, my STD statuses, etc to a company so I can get massive discounts on a bunch of stuff in various ways. It alters my behavior in a good way, it alters other peoples' behavior too, and I'm all the more happier about it. I much prefer this over stupid things like sin taxes, consumption taxes and laws that most people don't stick to or agree with (talk about choice and consent, huh).
People also chose to use Netflix or Steam (and other streaming platforms) instead of pirating. Last one would (and still is) be free. So it's not unprecedented.
Another reason for this is addiction. Addiction has people doing things that aren’t in their best interest despite them being otherwise intelligent humans.
No, I don't think so. I think most people would choose to pay with info rather than cash even if they have the cash simply because they don't fully grasp the actual cost to them. People make foolish (from my perspective) economic decisions all the time. I am currently traveling in the American south where I am surrounded by shockingly vast numbers of morbidly obese people who willingly trade their health for a sugar rush. No one is holding a gun to these people's heads and forcing them to drink sugary soda and eat fried food, but they do it anyway. They do it because they like it, and because they don't think about (or don't care about) the long-term consequences. People are (again, from my perspective) stupid. But I don't think it should be the role of government to save people from their own stupidity. That is a very slippery slope.