Let me just start off by saying that I'm not really arguing against your overall opinion here. I completely understand your argument in your post and why you are saying it. However, we also need to remember the principle behind why the blockchain was built in this way. The reasoning behind having an open wallet, is so that is creates an atmosphere of openness and trust. In other words, by having access to other users wallets and transactions, it is supposedly creating a feeling of closer user interaction and a basis for why you want to transact with certain individuals, based on that trust and the transaction history of that user.

The open wallet feature allows everyone access to the same data and information about a user and their activities. So if someone is acting against the best interests of the blockchain as a whole, or is engaging in shady practises, then you are able to trace this and this individual can be pin pointed as a bad actor. It can also help protect against scams/scammers (you know this is true) and further interactions against an individual in any given future activity that would be against your own self-interest and the entire platform as a whole.

As with everything, there will be a compromise somewhere, and it is your choice in the end of whether you want to use the platform or not. Yep, it is a double edged sword, and yes you are right in the fact that it limits your privacy on the blockchain.

The question you need to ask yourself, is what is more important to YOU.

JUST SAYING BRO LOL