There’s academic researchers at universities working on developing these kinds of models as we speak.

Where does the funding for these models come from? Why are they willing to fund those models? And in comparison, why does so little funding go towards research into how to make neural networks more privacy-compatible?

I’m not wasting time responding to straw men.

1. Please learn what a straw man argument is
2. The technology you're describing doesn't exist, and likely won't for a very long time, so all you're doing is allowing data harvesting en-masse in return for nothing. Your hypothetical would have more teeth if it was anywhere close to being anything but a hypothetical.