While I'm generally first in line to slag capitalism and corporate enterprise, why do you think a public or non-profit organization would do it better? The US feds through their profound incompetence basically gave up the home addresses of some astonishing number of therapists by just not considering it confidential. Also wasn't the US's security clearance database compromised?
I don't think the for-profit nature helps, but I think that's locating the problem in the wrong place.