that is not an acceptable response.
Acceptable for whom? RSG doesn't have to answer to anyone but themselves :)
They need to figure out a better solution here.
They really don't need to. They could. They may! They'd like to but not at any cost, including their own sanity. This reality of them not having to answer to anyone but themselves is the entire point of being a private entity operating in a free and open economy.
just asking to lose an entire sub-section of the player base that is concerned with their privacy.
It's important to understand that growing or even maintaining the userbase is not a game goal. Growth is this emergent thing that may or may not happen. The dev and his team want nothing more but to build cool things that they enjoy making. That's it. The end. They don't plan stuff, have a whitepaper, or a roadmap (and probably never will). Which is why it makes RSG a bad "investment." It's why they insist that this "is not an investment."