This is a false dichotomy. There are tons of ways to improve the implementation without just hacking parts of the URL out of the "omnibar."

You could split the omnibar and/or allow it to be resized so both pieces of information can be shown. You can use differential color highlighting and/or text formatting to convey which parts google considers "trusted." You could implement an "expert mode" button somewhere that turns all of these "improvements" off. You could add an extra field that shows security-critical information not just about the URL but about the resulting connection(s) to the host.

This is hardly exhaustive, which is also a good description for Google's effort on this one.