I still think this is terrible. It flies against the principles of HATEOS, we have a design idiom that web developers /should/ be following to show us precisely where we are and what is happening in a website, why would we want to lose all of that information.
I would be very unhappy if they removed the option to disable this from chrome, almost to the point that I'd consider changing browsers (and I like chrome...)
</rant> (sorry about that)