Yep. That is the huge problem with top-down code writing versus bottom-up common law. I think if our system is to survive another 100 years, we must find a better balance between those two approaches (because common law also has its flaws).
But I agree, this happens to be an example that is a no-brainer and should be immediately reversed. Of course, everyone has the option to write a notice letter to their ISP that they will hold them to account for the safekeeping of all of their data. Or not use the internet or find a different ISP. Options exist still.