Crypto's biggest friction point imo has been that people are used to interacting [primarily with centralized services. Average people don't want to manage their own crypto wallet because they aren't used to being the sole person responsible for managing things like that. They don't want all their money to be tied to a single computer, or QR code, or device, they want it tied to an account held by a big company, where all they have to do is prove who they are to access their stuff.
Because of this habit it feels like decentralized services will always end up as a collection of siloed centralized services. And with centralized services you get things like this data selling. Unless there's a paradigm shift in how non-technical people interact with decentralized services things like this are going to keep happening. That said, they're saying they're only providing publicly available data to ICE, but if it's publicly available and non-identifiable, why does ICE even need it, and why wouldn't they be able to get it themselves? (I'm actually asking, if you know I'd love to hear).