Yes, that's kind of the point. If you have the choice between $500 black rectangle and $1000 black rectangle where the only difference is some boring privacy policy details most people will go with option 1.
The companies that make these TVs love that we are this point since they can now take away the subsidy, and you also coincidentally now have no option to buy a non-smart TV, so they are now collecting $ from both the purchase and from the ads. Tada! Grossness all around.