You can be pragmatic and utilitarian and support privacy and free use of encryption. I would instead qualify his mindset of shortsighted.
An honest utilitarian would be willing to share their calculations, which would be interesting to see, though I am not sure how you'd balance the interests in the cases described above.
I've fallen into this trap. It led me to realize that, like ideologies, all frameworks are flawed. Assuming otherwise leads to positions that are starved for empathy and compassion - and that are ultimately counterproductive.