It does not compromise the user's privacy in any way. GA prohibits PII. Also, the webmaster has to opt-in to share the data with Google in the first place.
People just LOOVE to be outraged. For example in this thread people rage about google getting hands on their data. When I point out that the webmaster has to explicitly chose to share the data with google, I get downvoted. When I say that GA prohibits the use of PII, I get downvoted. It doesn't matter that I'm right. People WANT to be outraged. Reason, no reason, doesn't matter.