Snapchat proves there is a huge market for privacy. The secondary issue is trusting that the privacy is as advertised. Developers should seize on both.
However, the trust part is extremely difficult. Savvy users know that they can't trust 3rd parties with data and usually talk about encryption, self-hosting, P2P etc (that kind of stuff). i.e. not really 'trust' per se but more that privacy is 'built in'. Normal users (the vast majority), don't understand this stuff so the only thing they can do is have some faith in the company/service and carry on blindly (until they get burned).
Trying educate your market is a sure-fire way to go out of business. I don't know how developers can seize this without users already understanding why security/privacy (at a technical level) matters.
