I actually had someone read the Privacy page on my Web site yesterday. He e-mailed me, asking to be removed from any databases I kept. We actually had a nice back-and-forth conversation, where I explained that Statcounter (the Web analytics package I use), while it had put a cookie on his PC, couldn't personally identify him. I then explained, if he was still concerned, that he could delete any cookies from Statcounter.com and then block them in the future.
I had put up the Privacy page in reaction to the California law last summer. The law specifically requires commercial sites to put up a Privacy page, but I think it's a good practice for all sites. First, thinking through what to put on the page and how you collect customer data is a worthwhile process on its own. Second, some people are worried about privacy, and it's better to have a conversation with them about it rather than to completely ignore them. For it's only if they trust the Internet will more and more people use it.