You're not wrong, and it may come down to this in court, but there's a difference between what people think happens, or the reasonable expectations, and what actually happens, and I think it's important to recognise that difference and why it comes about.
I don't think someone is an idiot for thinking that the information they type into their private Claude account is private. I also don't think people are idiots for thinking their phone is listening to them and giving them targeted advertising based on that. Both are reasonable deductions from their lived experiences. Both are wrong.