Option 2 feel reassuring enough, but is out of reach of particulars.

Option 1 is not. In part because it is opt-out (will it turn back on on its own like my Facebook privacy settings?), and not always respected (sending feedback can mean your chat is used?). Also because disabling "Improve model for everyone" is very vague.

There simply needs to be a setting like "my data is confidential", in which case there clear guarantees like there are for ZDR.

As an example, I've seen people speculate that while input prompts and output tokens are discarded, thinking traces are retained for training, which could leak information. I doubt this is true, but it shows that the policy is not unambiguous and reassuring enough to remove all doubt.

Thanks for asking.

I was thinking about this some more, and perhaps the best solution for subscription plans would be to charge more for real privacy. In which case breaking that privacy would be committing fraud. Just a thought.