Great questions Deirdre and ones that we all need to come to grips with. Part of my own experience with learners, particularly those categorized as digital natives, the net gen, or millennials (I've even seen the term neo-millennial lately) is that they have a completely different concept of privacy than most of us. In some cases they have no concept of privacy at all and do not see why we are concerned about it at all. I think that the example you give is a good object lesson. we need to deliver more of these to our learners.
I think that the issue of what exactly privacy is is part of the bigger issue of information literacy, which is in my mind the single biggest issue we face with the use of social media, Web 2.0, and online learning. If learners cannot find, analyze, interpret and use information properlythe will be as illiterate as someone who cannot read from a book - privacy will be a part of this.
Anyone have any thoughts on how to get learners to be concerned about privacy? Is it a real concern or just something us oldies have to get over if we want to pay with the net gen?