This discussion isn't about the word life, it's about privacy; I'm sure the question of "life" will become harder if we end up creating sentient AGI...
Privacy in this discussion can mean different things, where there are definite overlaps, but also distinction:
* privacy of action (being sure that no one is watching what I'm doing)
* privacy in communication (being sure that my priviliged information isn't compromised)
We should be concerned with the second; the first is already lost