Yes and no, because people still will think that when it's done at scale it's different from some stalker following YOU explicitly, and not just following everybody. Also, the mental model is "they just want to sell me something, but I can just ignore and don't buy if I'm not really interested". And especially going down this second rabbit-hole opens a whole world about consumerism that not many people are comfortable with. At the same time there are people that are totally against consumerism that should be more informed and care more about tracking and privacy; with those people it's probably easier to have that conversation.
I'm not so sure that counterpoint in particular holds. I think to say the "number of people that are going to be okay with that will [still] plummet" is an understatement. I'd go so far as to say no one, at least no rational person, would be okay with a "record [of] who you talk to, when, how long, where you go, what you do, what you say, when you sleep", etc., just because of the scale.
This is exactly what I was saying - if you look at the polls, people actually tend to support things like the UK's Online Safety Act. Explaining it more does not usually result in a change of that. The difference with a PI is you're asking about them individually instead of everyone - of course they trust themselves, they just want everyone surveilled for that same feeling of confidence.
People don't care. This is demonstrably true.