The legal / regulatory aspect is just one side of the non-acceptance issue. The other side is consumer trust (or: lack of it). Until recent years all innovation was tangible - stuff you could touch, put in a drawer and forget about, stuff you could turn off and be safe in the knowledge that it WAS off.
These days so much innovation happens outside the area of user control. Phones that track you (sure, you can turn them off; but then you can't make calls). Websites that know everything you've clicked on. Companies that "need" your personal information just to sell you a sausage roll.
The problem is that the ordinary people feel that all this new stuff is
a) outside their control
b) likely to steal all their money, publish naked photos of them, sue them, get them arrested and/or keep coming back no matter how hard you try to delete/remove/turn off or bury them.
And it's not just ordinary people that are having trouble. Even the people supposedly in charge are getting bitten in the bum by their technology: Gordon Brown and the live radio mike (bigot-gate) incident?
Now whether these problems are real or imaginary is immaterial. We keep hearing about problems: people getting their bank accounts emptied, etc. and the fear of a problem is usually the reason for lack of take-up of new gadgets and innovations - not the problem itself. The reason being the lack of trust and feeling of powerlessness in our relationship with these new-fangled, electronic gizmos.
Maybe when every new gadget comes with an "Ooops, I didn't mean to do that" button that simply undoes everything and can be TRUSTED to put everything to rights, then we'll start to see ordinary people feeling more positive about innovation - instead of feeling that they need a PhD in CompSci just to understand the manual.