So having problems with my personal information being spread to every company in existence so they can advertise to me more makes me an "old timer?" Regardless of that, I *am* old now, I turned 30 last month. I have a son, I have two step kids, all three of which I ask not to give out any of their personally identifying information to toysrus employees or myspace (do you ever read the news? -- maybe news is just for "old timers"). Anyway, you confuse paranoia with privacy and respect for your customers. This is different than not wanting governments or others in power to have too much power, this is different than a surveillance society run by government agencies, this is simply about companies wanting way too much information from their customers even when their customers (me) don't want to provide it.
Being paranoid has to do with believing a company or agency *might* do something to you, but in this case, we *know* they are doing it. They use that information for telemarketing, ad targetting, and sharing with other companies, who in turn use it for the same purposes (including reselling it again to others). This is a fact, not a fiction or something that might happen. Read the license agreement. It's not unreasonable to not want your personal information spread everywhere.
Have you ever been a victim of credit card fraud or identity theft? My wife's purse was stolen and believe me, it's a huge, huge hassle to get everything squared away. She got sent to collections for things that weren't even hers. Further, it's not just things being stolen from purses. My information has been stolen no less than a dozen times. The most notable have been when a credit card processor got hacked and everyone's information whose cards had been processed by them were stolen, and when the VA had one of their laptops stolen, all my personal information was in there (name, address, birthdate, social security number, military service record, marital status, dependent status, etc.). I believe I had an account at hotmail when their list of subscribers info, usernames, and passwords were stolen (which means someone had access to any email I had in their system). The point is, it's much more prudent to limit who has your information, because you can't trust them to keep it safe.
Now, when I say that, I'm not saying they're not trying. But the fact is, they can try as hard as they want to keep it safe. They can hire security people, make firewalls, etc., but things happen and information is lost. That's why it simply makes more sense to make sure your info isn't spread out everywhere.
Let me give you another example. I worked at a company that had a very large e-commerce site that literally did millions of dollars of business per month (more around nov/dec). When I got there, I found out they were storing people's credit card information (number, exp. date, name, address, the 3-4 digit card code on the back of the card, etc.) forever. I mean, there was no deletion process. The card numbers were not encrypted and the server everything was on was web-accessible and easily hacked (outdated software with published vulnerabilities).
So now we have examples of companies large and small with either published information leaks/hacks/losses or completely insecure ways of storing personal information, and I should still trust these guys? It just makes no sense.