It's not so much about what you (or I) want to do. The average Coinbase user is not as knowledgeable or as concerned about privacy as the average user on this forum.

I think it's good news, just like when Paypal announced it would offer Bitcoin to its customers. Neither you nor I would buy it through paypal custodial service, but it popularizes Bitcoin and helps normalization and mass adoption (another thing is that Paypal later announced that it would allow withdraw Bitcoin but that was later).

As for depositing (even part) of the paycheck in Coinbase, this kind of thing increases turnover. It's a known fact that people spend to the extent you make things easy for them. One of the reasons for Amazon's success is that people spend with a click, they can even fund with a click.

So, yes, it's not ideal, but it's good news.