This statement is ridiculous. The web was not originally designed to be an application platform, it moved that way because business pushed it in that direction. I know the vast majority of sites I visit don't use cookies or javascript for anything important, because I have both of those turned off by default anyway. It seems very obvious that the majority of cookies and javascript these days are being used for tracking purposes, i.e. things that don't benefit the user in any way and should probably be blocked for practical purposes.
>Being overly paranoid hurts innovation and limits what we can do.
This statement is also ridiculous. Being concerned about your own privacy isn't paranoia, it's self-preservation. We have all the reason to expect these companies to think twice before going forward with some innovation that could be potentially harmful, but it appears you want to encourage them not to do that. What you're actually saying is "companies having to worry about ethical issues limits what we can do," which is absolutely true, and this is not a negative thing.
To me the reality of this technology is more Idiocracy than anything. The marketing hype is that it's somehow a futuristic sci-fi fantasy device. It's just another way to sit on the couch watching TV and playing games.