Privacy is a weird thing.
There are some things you obviously want to keep private. Like your private keys and passwords. Although, I would categorize these as secrets. Not meant to be known or seen by others.
Then there's other information, like your real name, date of birth, address, email and phone number. You might give these out selectively depending on the situation to your friends or businesses you trust. I would describe these as your identity.
Fear of having your identity stolen, being doxxed or simply being able to freely express your opinion are good reasons to keep your identity private. I mean think about that, we don't really have a right to freedom of speech unless we do it pseudonymously.
Then there's the other end of the spectrum. Transparency. We all want more transparency in our governments, politicians and corporations. Privacy of the individual and transparency of governance. But we also don't want our governments to have our information (or at the very least we don't want it leaked).
Bitcoin is both. We like knowing how much BTC our governments have. We like knowing when Saylor buys more. We don't like KYC or when someone can identify our wallet. It's not a simple thing.