This is a defeatist attitude. Just because the status quo is hostile to user privacy does not mean it has to continue to be that way. Other browsers are trying to fix the problem, while Google is trying to preserve it.

I don't think there is a "big deal".

people didn't like the original version and people don't like this "new and improved" approach. it's the same as what's already out there.

Frankly i'd be more in favour of people making a bigger deal out of it.

Agree. Moreover, natural alternative is fingerprinting, that's harder to opt out than 3PC or FLoC.

What's already out there is largely blockable. This being baked in to the browser makes it seem like it wont be.