You realize nearly all places have this same policy? XBL, Facebook, mobile phone companies etc. People are paranoid however this is a good thing... and a bad thing. Though there is absolutely no way you can argue it's bad, or be against it, remember YOU AGREED TO IT! No one reads it, just go to accept we know, but you still agree to it. You are held under those requirements. If you don't sign up to PSN, none of this will happen.
Pros
*This helps build services and collect information such as services used most, services downloaded most etc. Without something like this they wouldn't even be able to list what was downloaded the most as a game, because that would require taking data.
*Helps build games, people are playing certain things more, and certain parts. When they see people are replaying certain portions of a gave they can gear and change, game testers and reviewers are only a part of making it.
*Helps correct problems, without this they couldn't even check what ERROR you had without it being illegal, wouldn't be able to see how large amounts of people affect areas, wouldn't be aloud to have trophies, because it is all under data mining.
Cons
*Of course there is cons, one being they can monitor you for things like piracy.
*If cops need data they can request and get everything you ever did on that machine to build an investigation.
Notice how the cons are legal things? Mainly due to things like childporn, etc and foremost they need this, or else they wouldn't even be aloud BY LAW to give out any information about what you do on your PS3.
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