This is interesting to follow; I basically agree with your take, but I also know precisely the kind of libertarian "anarcho-capitalist" type that Rayiner is eff

This is interesting to follow; I basically agree with your take, but I also know precisely the kind of libertarian "anarcho-capitalist" type that Rayiner is effectively responding to, folks who follow in the footsteps of Murray Rothbard and company. They elevate "coercion" to the highest possible crime: you cannot have a state that isn't invested with the power to coerce its citizens' behavior, ergo a benevolent state is impossible. So they fashion themselves anarchists, either unaware of or choosing to downplay the very anti-capitalist roots of anarchism. (And Rayiner's observation about the frequent criticism of "a state monopoly on violence" from that crowd is one I've also had; as opposed to what, exactly, a free market for violence? Or a natural monopoly on it, perhaps? I understand their criticism to be valid concerns about what the failure conditions of that monopoly lead to, but many of the alternatives are horrifying in their success conditions.) Turning this back on the actual topic, though, what do you think the libertarian response to the problems in your last paragraph should really be? I can't think of any reforms which don't still depend on the state following its own rules for both what it's allowed to collect and what it can do with the data it does collect. Granted, merely having those rules--which we largely don't--would be an improvement, but it feels like it's in the "necessary but not sufficient" category.