OK, I know this might have been said and will definitely get buried, but the people who read this are absolutely numb to the law. What is says is not what people think it says. I guess you just have to have a law degree and some understanding about what effect contract language has beyond what the words seem to mean.
I'm not saying you guys are... uneducated. But you're not lawyers, that's for sure.
I could tell you that the TOS does not allow them to see what programs you have on your computer OTHER THAN their own. They can see your hardware, so that's something, I guess. But they can't see who you are, so how bad is it?
I can tell you they won't be able to watch your porn collection or know what sick things you do with downloaded Facebook photos...
But nobody will believe me anyway because you're all convinced that "companies are evil" and "my privacy is soooooo important" and "anyone can understand legal contracts" (the last one I honestly believed until I read your reactions to this TOS segment).
OK, go back to complaining, I'll leave you guys alone now.