Hiding part of the URL is what every browser currently does, when the URL gets long enough. Does that count as "destroying information?" The Opera alpha shows the whole URL when you click on the address field.

I think I'd be more likely to notice typos like "yahooo" or "gnail" with the new display method, without the noise of a thousand-character URL surrounding them. That is by no means the be-all and end-all of anti-phishing technology. It's just giving me one more chance to see something that might be amiss.