If you use AdSense on your blog, Google wants you to have a privacy policy and to include specific information... https://www.google.com/adsense/supp...&sourceid=aso&subid=ww-ww-et-asui&medium=link To that end, here is a free plugin that is easy to use and includes the policy information desired by Google... http://www.synclastic.com/plugins/privacy-policy/
I just create a privacy policy page in my Wordpress installation and then copy and paste a cookie cutter policy I have into it. I only have to change the name of the site for each new domain I do. No need for fancy plugins.
I think the main thing is just to have a privacy policy (regardless of how you create it). Your "cookie cutter" policy sounds like it would work fine.
Thanks for the info! btw - I have Brian's offline product (see his sig) and it ROCKS! (yes that was a completely random unsolicited comment)