I think there has been a huge shift in the privacy concerns of the average people. 10-15 years ago we shared our (LIVE) locations constantly and everything defaulted to doing that. People tagged everyone on all photos (with locations) and initially there wasn't even a way to consent to that. Today that sounds really extreme. Now many people will lock down their accounts and they aren't sharing as much as they used to. You are right that the average person doesn't care as much, but it's not entirely true that people are completely careless.
I think they could have established trust in it if they kept at it for a little longer, but they dismanteld their first party studio some 8 months after it was started and downsized the Stadia team pretty quickly.