One of the foundations of contract law has always been that a valid agreement requires a "meeting of the minds" - that both parties essentially agree upon and desire the outcomes specified in the contract. Somehow this got thrown out the window with the "click agree to continue" mode of doing business. I'm not going to knock long lists of terms and conditions - from a technical, legal standpoint they are often necessary to protect both sides and allow business to be conducted in a reasonable manner, and there are plenty of instances they are honest and straightforward parts of the bargain.
That being said, there are also many instances companies are sneaking in stuff that has nothing to do with the other party's conception of the agreement. Courts have been upholding this bullshit, and they should not. Virtually every case where privacy issues become problematic involve these situations.
My suggestion would be to have three or four "standard forms" for Internet agreements that are reasonably easy to understand (the idea modeled very loosely on the Creative Commons concept - straightforward options, with icons indicating what is included / excluded). I would start with "free as in beer," "pay with money," "pay with ad viewing," and "pay with your life data." These can contain the overwhelming majority of the "boilerplate" and be explained fairly easily. This leaves the exceptions, which in most cases should be short enough for a person to deal with. If you can't start with this and have a humanly manageable agreement, then your product or service is probably sketchy as fuck and people should stay away.