That's a bit extreme. If anything it will force a lot of introspection among the string pullers and any illusions people still have about privacy in the cloud (without encryption) will hopefully be shaken. When you affect those with capacity, you make things better for the less capable or incapable... All this is noise, and noise is good.

After all that's what cleaned up business practices significantly at the start of the industrial revolution.

In fact, this is just another growing pain in a new industry.

  Industrial Revolution => Child Labour
  Automobiles => Safety
  Data => Privacy

Are they perfect now? Of course not, but they became better.