The problem I have is that the cost isn't well known. Nobody thinks about how the advertising agencies work, or how Google and Facebook make their money. And they certainly don't directly disclose their business practices to the users. Instead, users see free software and services thinking that they're free (and they're not). That's pretty deceptive.
Why not directly disclose the cost to the user if it's so great? Why is it secretive? Maybe advertising agencies really suspect that users wouldn't appreciate the cost at all or maybe they think users wouldn't care. Either way, a price tag is nice.
And by the way, Google is among many that buries its policies in lengthy legal jargon too. At least it makes users aware of policy changes.
I can only speculate what kinds of information advertising agencies collect and how they use the data. Whether it can identify me as nslay, my Google ID, a cookie number, an IP address, or a behavior pattern is irrelevant. I don't like the idea that Google, for example, can build (and probably does) an almost complete profile of my web surfing history (since many sites host Google Ads). I personally don't want to be tracked and I am opted-in by default. I have to 1) know that I am being tracked (which is generally kept hidden), 2) Find a way to opt-out (if any).
And again, as I pointed out: Anonymous data isn't necessarily anonymous. Once you cross reference data, you could, for example, build a statistical model and accurately predict the identities* of users. It's been done before and I imagine advertisers do this too (predicting someone's identity* by their web surfing behavior would be an interesting learning task).
* : By identity, I mean some abstract server-side representation of a user (which is not limited to something like a unique number for example).
You want my support for Google: Be upfront and direct about the costs and practices. Otherwise, I think you're a bunch of hypocrites to your own motto "don't be evil." Surely Larry Page and Schmidt have nothing to hide from us, the unsuspecting user ... right?