Good FP perspective and it reminds me of an old academic article about the potentially infinite lifespan of "Internet" data. The premise of the paper was that the marginal cost of storage is low but the immediate cost of evaluating data for deletion is high. The kernel of the problem is that the future remains unknowable, so it is quite difficult (and therefore expensive) to decide that a certain piece of data will not become valuable in the future, even if it looks to be completely worthless now. (Have I rung any bells? Probably CACM around 2005? Or earlier in an IEEE magazine.)
Putting the onus for the retention decisions regarding personal data on the person does sound like a reasonable approach. Then my data will automatically disappear and die after I die and stop paying for its existence. I could go into the philosophic turf of personal value, but mostly my reaction is that "Microsoft is being evil". Again and of course. This is a kind of pressure marketing that offends me. Targeting the people who are satisfied with Windows 10 the same way Microsoft targeted the users AKA victims of earlier satisfactory OSes in the Windows series. Yeah, I'm using Windows 11 on new machines, Linux on a a couple, and I have a boat anchor Chromebook, but I spend a lot of time on Android (studying a foreign language by reading books).
Me? I think Microsoft has mostly avoided marketing its products fairly and squarely. Mostly to seek and defend monopoly profits--but that seems to be the dominant business model these days. Part of a general trend that has destroyed the in-store shopping experience and which is now making online shopping hellacious. It's all about manipulating the customers to maximize profits and nothing about providing best values for real needs. And my data? My data only represents my achievement of obscurity as I glide towards quiet oblivion... (Your data and you, too.)
Here's a funny websearch for you: Ask about the most and least manipulative online shopping sites. The answer should surprise you--by not mentioning Amazon, the biggest player of such games. If your results resemble mine, then the negative side features Chinese websites, but a number of the worst abuses (of manipulative applied psychology) reminded me of my attempts to shop with Rakuten. The countdown timer trick in particular.