I think rejecting one of million apps and angering one developer is a bit different than reporting someone about a child pornography/abuse, ruining their life and making a global scandal that can put future iPhone sales in jeopardy.

Barely anyone ever cared about privacy. Convenience, no matter how insignificant, always wins. I will be surprised if this is the last straw that finally gets the masses to care about privacy. In reality there might be a few scandals but at some point no one will care anymore and Apple will remain popular.