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Privacy is overrated

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In the case of big organizations to (i) learn about the user so as to improve the product, and (ii), learn about the user to recommend better ads.

and (iii) manipulating users away from information and behavior inconvenient, and towards information and behavior convenient for the big organizations and the state.

So, if the intentions are good, why is everyone wary of data collection by central organizations?

Because the intentions aren't good, and even if they started off this way the temptation to abuse the power would probably be too great for anyone not to succumb.