I'm not really too bothered about privacy, and it amuses me that people who happily use Windows, Google, Facebook and other similar services, posture about privacy with a centralised crypto bank.
Well, that's what makes people unique. I think for them Google, Windows or Facebook is more or less "better" than Neutrino, so they happily use it with the cost of their privacy. Nearly all of my friends (who don't know crypto though) use them, it's like Google and the gang is part of their life, and so far they're happy with it.
My greatest concern is that the flight of accounts will disrupt the market on CB.
I think the volume might decrease, but I'm pretty sure Coinbase won't just disappear like that. I'm not a user of Coinbase but based on some news and report that I've read, there are a lot of users there. Maybe the majority think like you, so the disruption won't be that much.
f the acquisition means that my wallet there is going to be more secure, then that is a good thing in my opinion. I will move some Bitcoin into one of my private wallets though, but this is really because I think of my account at CB as a trading account, and not as a holding account.
Well, we don't know exactly what they do behind us.
In general, I do agree that privacy is not going to happen in centralized exchanges. The only way if people want to get pure privacy is to use decentralized exchanges, with some mixer if they want to cash out (depends on where they live).