The point is that everyone knowing everyone's business is the "natural" state of human society. For most of human history all my neighbors would know who I'm banging. It doesn't take some sort of insanity to live like that.
And you've only addressed half my argument. I don't know who my neighbor is banging because of cell phone tracking. You don't know who your neighbor is banging. Nobody in this thread knows who their neighbor is banging. It's an entirely theoretical danger that has not yet come to pass.