To my thinking, when I log onto a game, a few important things happen. First, I'm connecting to the infrastructure of a system that someone else owns. They pay money to own it; there is no reasonable expectation, therefore, that anything that happens there is 'mine'. I bring some of my stuff with me, like my PII, and I can't argue with anything said here about how we should be protecting that more effectively -- I should be able to maintain control over my stuff that I brought, or if that's impossible I should have some recourse to feel satisfied about what's being done to protect it for me.
I begin to RP, generating content within this setting which is someone else's creative property. Elements of my content are my original creative product, but they're impossible to divorce from those setting elements somebody else crafted. Who owns what, intellectually speaking? If I create a character from the ground up as being a part of that setting I don't own, and the person who does own it has to approve my integrating what I've written into it, it starts to feel like a vanishingly small portion of this can be called 'mine' creatively. Reduce this even further if I'm playing a roster character, which I far more often do. Sure, there continues to be an original creative element in how I voice that character and move them around the world, but every single shred of it is tied to the stuff that's not mine. It's partly mine, but mostly not.
Now I have this character I probably don't own on a game I definitely don't, and as time goes by I become a part of the community with the other people that play characters they don't own there. Some of these people are my friends, and I want them to feel safe and have a good time, getting to be involved in stories about the game world that isn't theirs. There are other people on the game too, and some of them might have it in mind to make things unsafe and/or not fun for others. I want me and my friends to be protected from that, and to have some recourse for satisfaction when that protection fails.
For all these reasons, I expect staff on a game to exercise their powers to observe. I accept it, because frankly I'm the one with a hand out here, asking to participate in something that's not mine."Sure, but I'm going to keep an eye on what you're up to" seems perfectly reasonable to me as an answer. Much like when I go to work and the entire facility is monitored; it doesn't creep me out, it makes me feel protected. I have the expectation that the people who own the company will do what they need to do to maintain a safe environment, and I trust that any information collected supports that goal. I don't know what I could possibly put in a pose written as part of a game's world that I couldn't bear to have the game runners read, but maybe that's just me. If it's sex and I'm embarrassed about that, well, maybe I should keep my pants on at the office if I don't want people to laugh at my inadequacies of both equipment and technique.
The security guards probably shouldn't gather 'round the monitor to watch, but they might, and if I don't like that I feel it's my fault for giving them something to see (even if science lacks a sufficiently sensitive device to measure its tiny scale accurately).
And for anyone keeping score at home, I'm in the 'wave at the camera, smile, and give them a show' camp.