There are already guardrails in place on subpoenas. They are about as strong as they can be. That doesn't stop overreach, it doesn't stop corruption, and it doesn't stop people from being people when trying to get them and when granting them. The best way to stop abuses of a system is to remove the potential for abuse. Do you want to remove subpoena power from courts around the world? I don't - you kind of need it to prevent people from destroying and hiding evidence. The only thing that is left is helping people understand the harm that comes to their lives from giving intimate data up, and regulating its collection.
Also, privacy legislation does not need to "take a hatchet to big tech." It will just reduce profits for a few months while the ads team figures out how to work around it. I promise you they will do a really great job figuring it out. Some of the smartest people I know work on those ad models, and they will still be able to use things like location, web browser, and search query to find relevant ads.
Most of the people who can't afford a subscription fee (who, by the way, are not your Indian colleagues, who largely have come from rich or middle class families and can afford a subscription fee) are not worth serving ads to anyway. They don't have money to spend on stuff that you are advertising. I see no problem with offering a free tier with limited search capabilities, and a version with a subscription fee. Lots of SaaS does this. This is basically what Google does now with the ads: the high-value users (young rich people like the HN crowd) subsidize everyone else by having high ad impression prices.
By the way, I did work at G. I'm not convinced that personalization actually helps the bottom line at all for Amazon and Google search when you balance against the reduction in CTR due to latency (personalization prevents caching), and the added compute and engineering cost of personalization (since personalization prevents caching, you need a ton of additional servers and a lot of extra brains thinking about how to make them work). The idea of a search engine that produces personalized and highly specific search results feels like a local maximum to me in light of the costs and the research around CTR and web UX.
Unfortunately, that local maximum is currently so heavily entrenched in the market that it can strangle any competition. Google got its market share initially by having really fast search results that had the words in your query, and having no ads (and then later, a few clearly marked ads). This was in competition to web search providers that tried to offer personalized search results and highly relevant ads. Since then, they have become the thing that they proved was an inferior product, and they keep out upstart competitors through market power.