Privacy nihilism leads to less private outcomes in the world.
People who care about privacy as an end sometimes have infinitely high standards for it.
That means that even a company that does an order of magnitude better privacy for a given class of feature still isn't good enough.
The company went out of their way to make their feature way more private.
But the privacy nihilists still give them crap for it.
The other users don't care… and maybe miss the extra functionality that had to be removed to make it private.
A lose lose.
Companies just say, "screw it, I might as well do it the less-private way if I'm going to get dinged either way."