Privacy and other ToCs cannot efficiently be optimized by markets because markets can only optimize efficiently for primary and a limited number of secondary attributes. Think how hard it is for consumers to beyond GHz to pick a processor. EULA, service terms etc are the last thing that is optimized for.
My suggestion: we should only allow privacy policies to contain standardized sections which are based on industry standards such as ISO, IETF, DIN terms. This would ensure that terms can be better compared and remove the possibility for companies to cheat consumers by hiding predatory terms.
I think privacy and ToCs could be optimized if there were an (probably regulatory) incentive. Imagine users had to take a quiz on the privacy policy before they were legally allowed to sign up, to prove informed consent. I imagine they would get optimized pretty quickly!
My suggestion: we should only allow privacy policies to contain standardized sections which are based on industry standards such as ISO, IETF, DIN terms. This would ensure that terms can be better compared and remove the possibility for companies to cheat consumers by hiding predatory terms.