While you obviously see it as a privacy issue, and I agree it is, many people would probably see what you experienced as great service. The fact that you could close your account and then re-open it and not have to go through the trouble of re-uploading all the data and reconfiguring all your payment information would probably be seen as a great feature by many people.
My cousin lost her phone, and upon getting a new one was very thankful that all her contacts got restored onto the new phone. She didn't care that somebody else has access to her list of contacts. She only saw the plus side. Before the advent of cloud services, losing a cell phone or PDA (when they were still a thing) mean that you would loose your contact list. Being diligent about backing up the list to your desktop was very important so that you didn't lose data. Now all data is instantly synced, making our lives a lot easier.