While I hold privacy in high regard, your standpoint on trust is pretty extreme.
With your own "trust can be broken", you could conclude that you should distrust "with reason" (hey, it was broken) — basically, flipping it is an equally sound stance.
As a rule, I trust people, keep private stuff not easily aggregated (eg. I might talk some stuff over lunch, but will not email it to the person so they have it on record), and I am quick to distrust people once they fail me. Legal protections do matter, because they discourage misuse of unintended data sharing.