Imagine someone starts startup A on-top of the ATProto. They raise some money, get some users, some people love it, but ultimately they die. If the data was private to that service, that data dies with the startup. But if the data is all public future startup B can read that old data and do something with it. As a user that's brings me a ton of utility and comfort trying out new services.
If you're trying to built a local-first, mostly private service I just don't think the ATProto is the right tool for the job.