I think the average person just simply doesn't care about their privacy.
In some of the music communities I'm in the content creators are already telling their userbase to go follow them on threads. They're all talking about some kind of beef between Elon and Mark and the possibility of a boxing match... Mark was right to call the people he's leaching off of fucking idiots.
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They probably don't know what actually involves giving away their data and what actually concretely means. I'm a tech guy, developer, here in the Fediverse and neither I do know actually what it means. It's the lack of information the problem. I could imagine it though, but it's not the same thing. I could imagine that with my data big corps become more powerful, creating more addicting ads, contents and algorithms that eventually will fuck up the world even more. And that's a nightmare, I know. Metaphorically it's like intensive farming. "I eat meat because I love it and I can't give up on it" and as soon as no one sees what actually happens to the animals inside those farmings, no one cares.
They are my mother, father, and everyone else. Life's hard, and too many things compete for our attention.
You're right. Indiscriminate data collection is like the meat industry. Some people may find abhorrent how animals are treated, even how destructive the whole thing can be. But ultimately, out of sight is out of mind, right?
Like you said, the same with privacy. Apps are shiny, addictive, and seem to be given away for free. Then life happens, the mind becomes busy with what holds its attention.
We're doomed because the game being played is simply too complex for anyone make sense of it. Any competing insight is immediately drowned under the massive torrent of data we're all subjected to.
One problem is that it's very hard to quantify how much our privacy, our data, is worth. There's money to be made with it, but we, average people, have no idea how any of that works. This leads to general indifference.
Another problem I see is that most people don't correlate their continuously worse online experience with being spied. Every facebook change led to lots complaints, but people didn't quit, they just ate shit until they stopped complaining. Same with Twitter, Insta, Google, Youtube. Since the enshittification happens gradually, they fail to correlate one thing with another.