my comment on the same topic:

Since most of Google’s revenue comes from tracking users across the internet and offering them personalized ads, it will be interesting to see how the company strikes a balance between user privacy and revenue generation.

Isn't it obvious? Google own's the proxies. And judging by the look of this, they are going to act as a a Man In The Middle for HTTPS, so they will be actually able to see everyone's plain text connections. This is not a privacy feature, but a privacy nightmare. Like everything else on Chrome, tbh

Edit: I don't know if they will be breaking HTTPS or no, since I didn't see the details of how this works. But even if they don't see your plain text traffic, they are logging your every request, which is scary.