It's the wage theft versus retail theft problem, no matter which one has higher 'real' costs, society has decided that one is the 'real' problem that we should prioritize.
Back in the day, Google eng had pretty unguarded access to people's gmails, calendars, etc. Then there was a news story involving a Google SRE grooming children and stalking them through their google accounts...
It was the classic "oh no we did caching wrong" bug that many startups bump into. It didn't expose actual conversations though, only their titles: https://openai.com/index/march-20-chatgpt-outage/
The extra system prompt can definitely cause some performance issues, and it can over use them. The deleting every line behavior is gone though. It's definitely not something you should turn on for every conversation, but it's quite compelling for creating little capsule web apps.
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