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Privacy affects a number of things, so it's hard to give any broad answer, but here's a few individual examples I guess.
Obviously these are just a few examples, and there are ways in which a lack of privacy can also be beneficial. For example on my harassment point, you could also argue it's bad that neo-nazis have anonymity, because it makes it hard to stop their dangerous rhetoric, but that could again be countered by saying neo-nazis are much more likely to harass and threaten people, who themselves then need privacy.
It's a similar argument to free speech. It might not be good for everyone in all cases, but limiting free speech (or in this case, not having or limiting privacy) would lead to oppressive ideologies gaining power faster than non-oppressive ones, would dull human expression and make things more monolithic, and generally make any form of democratic or outside-the-norm expression extremely difficult if not impossible, so we accept the potential downsides in favor of the much larger upsides.