I'm not so sure that counterpoint in particular holds. I think to say the "number of people that are going to be okay with that will [still] plummet" is an understatement. I'd go so far as to say no one, at least no rational person, would be okay with a "record [of] who you talk to, when, how long, where you go, what you do, what you say, when you sleep", etc., just because of the scale.
I see some success by telling people "what if was our government doing the same thing to us, even by extorting private companies? what if that same government, or the next one, just hates you for whatever reason?"
But again, I hear you. Most people unfortunately have come to view the issue as being just about targeted advertising (which some go so far as to espose as a good thing).
Yes and no, because people still will think that when it's done at scale it's different from some stalker following YOU explicitly, and not just following everybody. Also, the mental model is "they just want to sell me something, but I can just ignore and don't buy if I'm not really interested". And especially going down this second rabbit-hole opens a whole world about consumerism that not many people are comfortable with. At the same time there are people that are totally against consumerism that should be more informed and care more about tracking and privacy; with those people it's probably easier to have that conversation.