In the end, simple education by people who actually give a damn would be a godsend.
I think my dad is right up there w/ the 'A little bit of education goes a long way' group. My sister installed that little purple POS one day (on a clean install no less. I almost decapitated her and buried her in a shallow grave). I told my mom what it was. She said she wanted to keep it. I said it's spyware, malware, scumware . . . she'd have none of it.
Well, a few hours later, my dad comes to me and goes "I heard you talking to your mom about that program your sister installed, so I did some reading, and uninstalled it myself." None of you can fathom how proud that made me
.
That took me from a 1 hour uninstall nightmare to a 10 minute Ad-aware/Spybot S&D cleanup
A little education can go a long way, so long as the person you're educating is listening
As for a government mandate on spyware; I think to some degree we need it. We need proper laws on what is acceptable install behaviour for these programs. I.E. clicking 'yes' to program 'A' will NOT allow that program to install sister programs 'X', 'Y', and 'Z'. There should also be a mandate on what that particular harvester should be allowed to collect and send to their company, and wether or not that company should be allowed to sell it to other companies.
Scumware is getting more and more malicious. Just look at CoolWebSearch. You need a very specialized program to remove it! Not even the standard spyware removal tools will extract it from your system properly. That's rediculous, imo.