OK, first, so called "Privacy Tones" are generally refered to a PL Tones (a Motorola Trademark) or in technical terms CTCSS
They do NOT make your conversation "private" as anyone can listen in - what they do is make your radio quiet - picture Your party, and my party are having radio converstions on the same channel - you can't do it at the same time, - you "step on" each other, what it DOES do is prevent your squeltch from opening unless the right PL tone is received - so your party won't hear us (unless you hit the channel monitor button) and we won't hear you
Second - do NOT believe published ranges. Those numbers are under ideal conditions
FRS - nice, fun, cheap, low power, mandated maximum ERP (effective radiated power) - meaning things like the sntennas are "fixed" - you can't change out for a better antenna etc. The nice part? No license
GMRS - Now you get into fun - 5 watts for a hand held is more a "technical" limit. A 5 watt HT (again, a Motorola trademark - many many VHF/UHF radio terms in common use are Motorola trademarks) is/can be a fairly serious radio. GMRS allows for repeaters, which can give you REAL range, if you find a repeater you can use. It is very very similar to police radios, and VHF/UHF Ham Radio.
The bad part? You legally need to have a license - it's one license for your entire family. There is actually some enforcement of this, particularly on the repeater channels
As for radios - I'm a radio "Biggot" - I like big, heavy duty radios that work when everyone else around is getting "intermod" (a kind of distortion - you hear it, you'll know it), so I tend to carry "commercial" radios, The problem here is they are NOT legal for FRS (The ones I use ARE legal class accepted for GMRS), have to be programmed for the GMRS frequencies by a "radio shop" (or someone with the right programming gear), they can be expensive (VERY expensive if buying new), they tend to be heavy, etc. The advantage? They WORK, and you don't end up having to hold them to your ear to hear them
Another option? Take your ham radio license test - if you study for say, 2-3 weeks of nights, passing your Technician license exam isn't hard, and it opens a whole world of radio 'stuff' to you. The exam is currently $14 ($15 after the first of the year). No more morse code on the exams. The down part - every person who wants to use the radio has to pass