I think for most people and for most uses, it's not a problem. Most people don't pay attention to the URL, don't understand what a URL is, what it means, or how it works. It's just an arbitrary string that you put into the box to bring up a specific website. Insofar as you're dealing with those people, it doesn't matter much what displays in the address bar.
I can see why someone might like this. It's cleaner and highlights the domain. Arguably this might help a little to prevent phishing attacks, but they could have done something like, put the URL in bold or display it in a different color. They could have even color-coded the domain to signal how secure/trustworthy the domain is. Like maybe if it's secured with an EV cert of a trusted company, the domain is green. If it's some random $10 cert from who-knows-where, it's yellow...?
I'll note that Safari already does this. It just shows the domain. I use Safari constantly and never noticed. Personally, I don't think I'll have a problem. At least it appears to add the HTTPS:// back in when you hover over it, which I think is an improvement over the current behavior.