I strongly disagree. Most would bitch about it, then do it anyway, knowing it may be a shitty deal for them. That is consent.
If people really cared, then that market would exist today. "Get your $5/mo. much more private email from privateemail.com!!". This notional private email provider would be able to advertise Outlook.com, GMail, etc.'s privacy policies independently of those email providers to ensure that "click through" isn't the only reason people are unaware.
The only viable privacy option is to host your mail at home. It doesn't have to be difficult. We "just" need a suitably tailored GNU/Linux distribution in a Sheeva Plug, or Raspberry Pi, that you just plug-in, then use as a web service. (Just one snag: your ISP must allow you to send and receive e-mail: many close off port 25, and some even ban home servers.)
Now to get your email, they need a search warrant and someone to knock on your door, which is inconvenient and costly.
Your problem is not education. Your problem is your position is just a marginal one. Sad in some ways, but true.
The truth is, people have bigger fish to fry than this, and like a lot of things, they like to talk about some stuff, but when push comes to shove, "privacy" is just nowhere on the list of priorities, educated about it or not. The market would already exist otherwise.
No-true-Scotsman? I don't care, this one is valid: we're talking about someone who has some distant relatives in Scotland, but never set a foot there, hardly speaks English, and lives in China.
I do get that the proper threshold is not allays the same. The threshold of consent for having sex for instance, is very high (or ought to be). Still, some things I say over email are just as private as my dick.
People often do foolish things, it doesn't mean other people have a moral right to take advantage of them. (Alas, they sometimes have the legal right.)
By the way, in this case, it seems Microsoft spied on the blogger's account, to know where the leak came from. The leaker may not have used hotmail at all. While it's easy to notice cloud spying when sending from a webmail, it is a bit less easy when you send to a webmail: you're not even legally expected to have read the TOS. I mean, you still have to be careless to make that blunder, just less so.
No they didn't. Over 99% of them clicked through without reading. Some of them suspected Microsoft might one day read their email, but somehow shrugged it off, then forgot about it.
If people were truly informed, most would not give consent. Make no mistake: using a hotmail or gmail account means giving away a good chunk of your private correspondence. It also affects whoever you're communicating with, even if they have their own private mail server.
We need those Freedom Boxes. Fast.