> The solution here shouldn't be technical; it should be legal.
I expect more than a few commenters here will disagree with you. Some rather vehemently.
To those that do so, I'd encourage you to read the novel Attack Surface by Cory Doctorow. While it's fiction, in the book, Doctorow makes a pretty compelling argument for the notion that when it comes to privacy, we can't win by "out tech'ing" the governments and corporations. We're simply too heavily out-resourced. If I'm interpreting his message correctly, he is saying basically what Josho is saying here: that we have to use the political/legal system to get the privacy protections that we care about enshrined into law and properly enforced.
Now, is that going to be easy? Hell no. But after reading the book I was largely sold on the idea, FWIW. That said, the two approaches aren't necessarily mutually exclusive. But I do believe that those of us who care about privacy should focus more on using our (knowledge|skills|resources) to try to foster change through politics, than on trying to beat "them" with better tech.
YMMV, of course. But if you haven't read the book, at least consider giving it a shot. Probably Doctorow makes the argument better than I can.