Okay honestly, its still a pointless discussion, if the policy and terms didn't apply to the EU's strict privacy laws, then WhatsApp WOULDNT BE IN THE EU!
As for conversation and data, you do realise the all texts/ims/facebook chats/skypes/everything is monitored and if need be can be accessed by anybody with authority to do so such as Intelligence Agencies or Local Police with warrants as well as other random agencies.
Completely defeats the point of the app, if this is the functions you want, go use Skype/MSN/FB Chat/Other Traditional IM...
mämo and malkavian, this is the way the official app works, if you have a problem then go to whatsapp, the aim of this app is only to replicate an already existing app.