Only if the user doesn't understand how cryptographic signing and verification works. Otherwise, they'll know that doing things this ways actually creates stronger guarantees of privacy than what previously was done.
Once they've been encrypted, it's all just gibberish to the intermediaries. If you truly do see this as a massive loss of privacy, then why are you not outraged at Comcast and others that regularly act as middlemen with your encrypted data today?
That’s a massive loss of privacy right there. How is that even debatable?
Also given how Google works, I think it’s reasonable to assume that enabling this additional Google-tracking was the primary intention behind AMP.