Google isn't removing any ability to observe, log, and forward information about requests, in any way.
So the privacy angle is pure bullshit.
They are removing, among other things, the ability to dynamically cancel requests, and replacing it with a declarative API. That limits how well an adblocker can function.
When users try to install a Chrome extension, the browser is telling them what permissions it needs, e.g. the capability to read browsing traffic. So you could just decline the installation and install a different ad blocker that works without that permission.
