It raises the chance of losing your domain greatly. (Even though you can argue that having your email displayed exposes an attack vector).
Public info makes it much easier to recover a domain. And proper security on the email is required as always obviously.
I've helped several people recover domains by going to contacts I have at ICANN. Not having public info doesn't give me what I need to make a case. It's a non-starter many times. And it just confuses the issue for you as well when you are trying to correct things.
Registrars (we don't offer privacy by the way) want privacy because it is a) something they can offer and charge for and b) allows them to lock the customer in and create a barrier to exit. c) Many of them do this by changing ownership to them for the domain and giving you a contract that you are the beneficial owner. Not good for you. You want and need to be owner according to whois. (Read this again.)
If you want a private domain use a po box or a work address etc or your uncles's address. If you are a business you absolutely have no reason to have privacy (and many many businesses do because they have been sold some bullshit on this with respect to spam).