I'm all about defending my right to privacy. Even if I'm not ashamed of any of the web-sites I visit, I don't really feel it's anyone's else's business but mine. But if I want to visit someone's web site, I'm going to play by their rules. Same with visiting their store, if I'm going to be harassed by sales people every time I turn around, odds are I won't go back there. If I don't like how a web-site handles my visit, I don't go back. I guess I don't see this business of cookies as an invasion of my privacy, since I'm going to their sites. If a site I never visited were jumping onto my machine, installing things, and collecting info without me knowing it, then I would be mad. And that's what I use Ad-Aware for. About every 2 weeks, I run it to clear off all the data-miners that are installed on my machine from my surfing. (Although, to be honest, I do this less out of privacy concerns, and more just because I use a dial-up connection and I don't like anything else running in the background that I don't know about).
I think it's dangerous to just write off all concerns about right to privacy as paranoia. I want to be able to live my life the way I want to live it without my government stepping in and saying I'm not allowed to. But I have no grudge against letting the government know where I live.
I think it's a great thing to have principles and stand by them, whether or not anyone else in the world thinks they're worth anything. There are a lot of principles expressed by people on this board that drive me crazy, but I would never expect to have the right to tell them they can't think that way, or expect the government to step in and do the same. People are free in this country to be as stupid or as smart as they want to be.
And since we're talking about businesses here, at the start of the thread, I've always found that the best way to get through to a business is to take your business elsewhere, and let them know why you're doing it.