Indeed, but I imagine that from the service providers perspective there is currently probably a far greater incentive to keep the logs due to their commercial value.

I dunno. I think the majority of companies log for the sake of logging. Some take advantage of this data, but I doubt most do. Instead it just sits there on a drive waiting to be accidentaly leaked, stolen by employees, stolen by hackers or subpoenaed by governments, both good and bad.

Well for companies that are even slightly web-savvy the logs are very useful because they contain information about who your customers are, when they use your site, how often, what they're searching for, etc, etc - which can have a real commercial value.