Sure but Xorg has been like that forever and until recently distros started to default Wayland because of Nvidia, and there aren't many of them yet. Also some programs don't run well with Xwayland, some don't run at all. You're right from a technical privacy point but it's not the end of the world and it doesn't have to be privacy-invading, just don't run proprietary stuff. By the way, CInnamon will switch to Wayland, when the experimental support is mature enough. Don't know about MATE of XFCE.