Something I seem to have to clarify: I fully agree that everything except /tell and /group is public, and I don't have real issues with that being logged and reviewed. That was not what my posts here are / were about.
My issues really just refer to /tell and to a lesser extent to /group, and I dont think it's unreasonable to have concerns about that.
It is an issue whether to have that available for GMs to sift through by default. It may be necessary in some cases, but it might not be in others. To give blanket permission to GMs isn't a wise thing to do IMO, because it's comparatively hard to check on the GMs. Not limiting the power of your guards to the extent truly necessary is not wise.
Regarding "the only private information is the email address": I don't think this is true. It is personally identifiable information, but private information AFAICS includes anything that is not supposed to be made public. This, obviously, means PMs and /tells.
The "If you don't like it, don't use our server" is a bit simplistic IMO, but the real message that people should be made aware of is "If you don't like it, don't use our server for private matters". This, though, will still not include "private" RP which might be conducted with and intended for only very select players, nontheless being fully IC.
What I want to see is not a grant of full privacy, but a "only if necessary for ensuring proper operation of the game, including maintaining an enjoyable environment" sort of statement, and an effort being made to actually not view /tells unless truly necessary, which would be helped by the "display /tells only upon specific request" I proposed.
Oh, and BTW, I feel that I have been contributing by raising this issue (Edit: and the amount of constructive feedback proves that I'm by far not alone), as it may lead to a more concise policy. Yes, it is correct that you guys own the place. However, once you have more people in, not only on player side, but also on GM and even dev side, a viable policy is needed. Otherwise, people won't feel at home / welcomed in PS, as without a policy, there will be "incidents", and no way to deal with them. Edit 2: I think that that's by far not too much to ask, especially not since the intent is clearly along the same lines.