Nobody wants to use a public L1, but some should be forced to. States, charities, etc should be required to hold in L1, and if they use L2, at least the size of their channels should be public.

With Monero, those institutuons can make their wallets' private view keys public then you can see the ins and outs of those wallets. Well actually right now only the ins, but after FCMP++ it will be a proper view key implementation and will add perfect transparently ONLY for the wallet with the shared key.

With private channels your counterparty can see your node pubkey, onchain UTXOs used to fund the channel, and it's balance. If you trust everyone you're opening channels with, and don't care that they can see that info, I suppose it doesn't matter. But for transacting with strangers it does. It's a trade-off for both.