Because of competition, I am confident that a reasonable trade-off will emerge in terms of features and costs. Competitive pressure will lead to experimentation and improvement. There are privacy-sensitive options available already, and other ones will develop where there is demand.
That said, it is worrying how the actual state has been trying to turn this into its own surveillance tool. See latest 29C3 talks on government forcing telecoms to record traffic for the NSA and other agencies. But such use of power needs to be properly attributed, it is the fault of the state, not that of the internet. It is important to distinguish the cancer from the healthy organs.