This is just idiotic to say. Nobody actually prefers to have their data siphoned off, in the abstract. If you make it a choice between "privacy" and "being able to participate in society in any way at all", obviously they're going to pick the latter. That's not a "revealed preference", that's coercion. It doesn't actually have to be that way. We can have a world where we have smartphones, and the government can't use those smartphones to track your location at all times.