I mean, Signal has over 100 million downloads on the Play Store alone. Even on the odd chance those phone numbers do somehow end up in the hands of the NSA or whatever the chances of it actually relaying any real information about you is second to none.

Even then, you can't assume everyone who uses Signal wants to use e2ee explicitly. Some might just like the app's style, some might have family members who only use Signal, some might have an ethical problem with corporate apps but aren't computer-brained enough to know how SimpleX or Jabber or some other obscure alternative works.

Is the phone number requirement bad? Yes, absolutely. Does that instantly rule out all opportunity for it being a good app, privacy wise? Definitely not.

Further; privacy should be simple. Signal is designed to be as close to perfect as it can be without compromising too much privacy. They have decided that a phone number is necessary to prevent spam, and to combat the privacy implications of that they have chosen not to block temporary numbers for those who are more concerned.

Private chat apps are useless if noone knows how to use them. Signal tries to fix that, and I think they're doing a pretty good job even if it does have it's pitfalls.