No, not really. Both implementations give WhatsApp a complete list of all my contacts. The fact that one of those implementations might not be 100% accurate because of deleted contacts changes nothing - if you're someone who's worried about a third party having your contact list, it doesn't make sense to think "but hey, they don't know I removed $FOO last week, so their list isn't 100% accurate!".
Both implementations mean you'll have to take their word on what they will and won't do with the data, so there's really not much of a practical difference.
I can't imagine it's a simple task for a large company to unintentionally comply with a court demand, there needed to be some wilful choice between attempting to fight it or rolling over