Because people will still buy their cars. The average Joe has very little regard for their privacy. We've been trained to be numb.
> Is this really a tangible income stream?
Yep.
> Is it really increasing security?
Nope.
I have VW and I suppose We Connect, there's not a single thing that's worth paying for, not when you have CarPlay and Android Auto (or whatever that's called). If anything I'd prefer that they'd just drop the personalization they do with users. Our car will forever assume that my wife is driving, because that what the dealer configured and none of us care to mess around with it.
But yeah, people will buy the cars anyway, because all the automation is something that only an incredibly small segment has any interest in. It's just weird that those who actually care about connected cars are the only one VW is punishing with this move.