My mother innocently used this service, and filled out the form identifying all relatives by name. The results she received were entirely unenlightening, 50% of my DNA is now in their sketchy database, and I have no way to opt-out of anything. I truly despise this organization.
I fully agree with everything you say, but until legislation is enforced you can hardly blame a company for capitalizing on the lack of privacy laws (you can still hate them). Point is, start demanding legislation around data privacy and security to anyone who will listen.
I would rephrase your point, "don't be surprised when a company capitalizes on lack of laws" -- this I agree with. It's virtually a force of nature.