Well, not everyone's name is publicly associated with their home address, especially now that many people don't have landlines that would put them in the phone book.
The "if they need anonymity, they're doing something bad" argument is a poor fallacy that's been exposed multiple times. It's the online version of "Well, if you're not doing anything wrong, why do you need privacy?" Why should someone who wants to write a blog about shady dealings at their work be forced to put themselves at risk? Or even just something that their bosses wouldn't like ? There's no intrinsic need for identity to be associated with the registration of a domain name.
Yes, a court order can (in some cases) strip off the anonymity protections, but not all. For example, InvisiHosting doesn't require that a customer give us any personal information, we allow untraceable payments, and we delete logs daily, so even if a court order comes down, there's no guarantee that someone will be exposed. Still, that same argument applies to warrants to investigate a private residence, and I don't think you're arguing that everyone should just expose all their private behavior to the world, just because cops could go in their house if they're suspected of a crime. If someone's behavior doesn't even meet the laughable criteria for the cops to get a warrant, why should their identity be exposed to the world?
As far as hacks go, that's not necessarily true. If a registrar gets hacked, that's a much huger deal than the stripping of anonymity from domains. If someone's hosting account gets hacked, there's no guarantee that there will be any personal info there, that's on the user. If the server they're hosted on gets hacked, same thing. Most hosts don't keep customer records on their hosting boxes.
NetSol looks closely at registrant data.