Pseudonymity is superior because it gives the user the choice of radical transparency or anonymity. This is a good thing as I want the charities I donate to, to be radically transparent and not automatically perform stealth address functions with conjoin/coin shuffle.
How about a third option? Make private the default, but give the users the ability to reveal balances or transactions if they want to.
It is private by default. You have to attach you identity to a public address if you want to remove your privacy.