Ironically (and I think this is a legitimate use of the term) I hadn't realized when writing my comment that 'randomwalker' and 'Arvind Narayanan' were one and the same. But I apologize for my misinterpretation. I've read it again, though, and still have to fight the same reaction. Perhaps I'm just prejudiced against the 'open letter' format, as I often see it used in that way.
Still, if you can overlook my misreading, I would love your response. I understand that the example from the FAQ is not central to your argument, but I do think it's important in understanding your worldview. If I provide a tool that can be used, erroneously or not, to create or enable prejudice, at what point have I crossed the line into 'violation of privacy'?