Nothing on the technical end has changed. "Free" services have always monetized by data mining. Most paid services did not. What's changing is the user, here. They are becoming more aware of privacy concerns, and thus more of them are willing to pay in order to retain their privacy. Unfortunately, I'm not sure enough of them are willing to pay. Most still are living in the mobile app generation that expects everything to be free, or basically free. That's a market that will never work without some way to monetize, which means data mining.
I bet Microsoft and Google both would be very happy to provide you ad free, and thus privacy friendly, services if you'd be willing to pay the right price. The question is how many people would really be willing to pay for it.