This attitude is exactly the problem - we are selling our data in exchange for a service. If it's value were $0, Google would go bancrupt. So this 'pretend the service is free' thing needs to die because Google has been able to make billions. Clearly they are making a profitable trade. It's basically digital barter
Where there is profitable trade both parties have certain responsibilities.
Personally I stopped using free services everywhere I can because of this legal vacuum leaving me exposed.
P.S. No, I'm not saying that Google is in the right.