Evidence I’m getting from speaking with college students is that while privacy still matters, they define it differently.
The assumption that you can expect privacy in public was very much a 20th-century aberration… and they’re willing to concede that “public” extends farther than 20C folks assumed it does.
There’s also less that they feel they need to worry about keeping private. Variations in sexual and religious practices are less of an issue than they were, to take the most obvious traditional blackmail topics.
Don’t try to explain why privacy is important in areas that they aren’t worried about; that’s going to work about as well as when your parents tried to explain to you why the societal changes of your youth were bad. Instead, work with them on the areas where they do still expect to be able to maintain reasonable privacy. The past is gone; work to create a future.