I highly appreciate your thoughtful concerns. However, I believe that what I advocate is already the default for instances on other fediverse protocols like mastodon, so it's not like I'm creating new unprecedented issues for developers and instance admins here. Plus, policies don't always have to be perfect. They just need to be better than what we have right now, i.e. more transparent. They can be improved gradually as time goes on, and I think most people would agree with that.
Lemmy is open-source software, so of course no one can control how you run your instance. That said, if you plan to host an instance for public use, you should be transparent about what data you collect and for what use, meaning you should be explicit and transparent about your policies, whatever they might be. Again, I can't force you to be transparent, but I think it would be nice if the lemmy devs only recommend transparent instances on their website. And to avoid every instance admin needing to write their own policy from scratch, I think in the original source code there should be a policy document about what data is collected by default. That way, instance admins only have to modify the policy if their data collection practice differs from the default.
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Please, reformist social democrats like Bernie aint gonna be able to change anything, regardless of their intentions.