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Could they not also watch when a domain changes ownership and segment history based on the owner?

Over the time scales that archive.org holds on to data, domain ownership itself becomes part of the history. While permitting someone to hide a mistake for security reasons is reasonable, allowing erasure of past owners' history by the current owner is counter to their stated purpose.

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No, because the WHOIS details on the domain can change without ownership actually having changed, in the not-uncommon case where a domain starts out registered by a founder or early employee and is later transferred to the company proper.

Given the prevalence bogus WHOIS data, the inverse is also possible: if the 2nd owner uses the same registrar and "privacy-protection" feature as the original owner, the WHOIS data could appear to have not changed, except for the start date of the registration, which would look identical to a single owner who re-registered their domain after allowing it to lapse.

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