VPN/Tor provide something else anyway: anonymity. Privacy is a different thing. You can lead an entirely private life in an environment where everyone knows who you are and who you interact with. They just don't know how you are interacting with those people.

Most people don't need anonymity most of the time...

Really curious on your definition of private here because I have a buttload of evidence that says that is entirely untrue and you can as a private citizen buy detailed demographic and location data at an easily identifiable level for people without even needing to talk to another person.