Same hardware config, same IP, accounts never active at the same time. How is that going to unintentionally ban somebody playing at a net-cafe? It would make it harder to detect smurfs in an internet cafe due to the number of different hardware configurations. But somebody at home would have to emulate that environment: multiple PCs with accounts online and actively playing.

Yes, privacy laws, but the data they are collecting is to make the service possible. Unless I'm mistaken, a user would be allowed to request deletion of the data prior to account deletion.

Other software vendors literally install a rootkit on your PC for anti-cheat measures and if you have a phone with Google or Apple software running on, your privacy is out of the window as they collect a whole bunch of information by default. Hell, Microsoft probably knows you're using a pirated or unlicensed version with your permanent connection to the internet. All by the book.