Well, I suppose I should elaborate since I may not have been as clear as I could have been.
When I'm talking about privacy here, I'm referring to the group privacy within Burning Man. In other words, the idea that what happens in Burning Man stays in Burning Man. The intent of these rules, as far as I understand them, is to make it so people can come to this event and not feel the need to hide themselves just because they're afraid of the outside world seeing them online.
The organization is trying to maintain some control over it so , for example, the "Burners gone wild" type videos or whatever they were called that Burning Man had to go after in previous years doesn't happen again.
So, I still do think the intent is noble.
There is a reasonable argument to be made about how realistic that is now that youtube, facebook, and flckr have become so common and people feel the need to share every aspect of their lives online. I'm not saying there is a simple answer to this, since copyright and privacy issues are full of gray areas.
Hopefully that clears up what I meant though.