The general purpose of publicly accessible registrant data is that people should be able to contact the owner of the domain in case of an issue, rather than the registry or registrar. "domain privacy" is simply the registrar putting themselves as the domain contact and becoming a forwarding service to you.
For large companies, and registrants under those ccTLD's that require local presence, it not uncommon that a legal firm acts like a proxy for the domain owner. This is a service that they take a few dollars for, and is in many ways similar to domain privacy.
The requirement of having the registrant as the contact person for a domain is something that (to my knowledge) comes from ICANN, and I think it has a positive effect. A domain should be owned and controlled by the registrant and not the registrar, which is then reflected in the contact information. In an alternate history we could see that the registrar (or even registry) owned the domain and only leased it to the registrant, in which case the registrant's power would be limited to other online services that people "buy" today.
For large companies, and registrants under those ccTLD's that require local presence, it not uncommon that a legal firm acts like a proxy for the domain owner. This is a service that they take a few dollars for, and is in many ways similar to domain privacy.
The requirement of having the registrant as the contact person for a domain is something that (to my knowledge) comes from ICANN, and I think it has a positive effect. A domain should be owned and controlled by the registrant and not the registrar, which is then reflected in the contact information. In an alternate history we could see that the registrar (or even registry) owned the domain and only leased it to the registrant, in which case the registrant's power would be limited to other online services that people "buy" today.