Only a very small number of people read privacy policies. The use of incorrect wording upon first login/installation could result in people deciding not to use the platform as they can not be bothered to read legalese. Although (and I repeat) I am 200% pro changing the actual status, last we want make people hesitate more to use the platform.
What we are trying to obtain is rather revolutionary compared to other software: add a clear line upon install. Think about it. What does other software most of the time do? Use a EULA during the install process, who reads those (congrats if you are one of the probably 0.02%).
As Matt said, it takes a lot of perseverance to find the Firefox one (especially for Matt I have to add a reference to John Mayer's sound engineer here ;))
We are trying to have a mention on first page and when it comes to the point I am all about reducing UX clutter.
IANAL. I want Joe Average to be the person we write for. S&P 500 companies? Yeah they will first ask their legal department anyway before deciding upon a platform. Expand the actual Privacy Policy on
WP.org with as much as legalese as you want and add a link to it 'somewhere'. Case closed, see Firefox example.
We ask for more.