So the more interesting article here is "Do people even care any more?" Is Snapchat's CEO making an educated guess that his users are on the cutting edge of SN users and are already sharing a boat load of information and just don't care that much about the breach? Whenever FB makes any privacy changes there's usually a huge uproar. But not many of those complaining are high schoolers or college kids. Maybe they know their user base better than we think.
It makes sense: I have seen many security professionals complain on the principle, but not one user publicly state they are going to abandon SnapChat for that. These are roughly the generation that threatened to leave when Facebook rearranged buttons.
I'm not sure I got the extend of the issue, but: there is now an accessible database of phone numbers to SnapChat handles, right? I get how large scale hackers might use it (but presumably already have); or how a large marketing operation could use that to associate phones numbers that they have with handles, that are presumably unusable for the moment, unless SnapChat users would accept an friend invitation from a branded account.
However, the kind of spying that worries most SnapChat users should be from close relatives (parents, teachers, exes, cf. danah boyd’s research), people who already have your phone number, and already have seen your handle appear when they installed SnapChat, and were already denied access. That breach doesn’t change that. The social discovery feature functioning as it is was the issue, and that was already widely accepted.