Huh, apparently I missed this thread when it was created. Let's pick it up.
Normally, I'd be the only person to push against changes to how our GA works, but in this instance, I completely agree. The full IP information does not provide us with much benefit (if any at all), and while the privacy gains are fairly small, I can see no practical argument against it.
I'll discuss this with site admins, but given that you've already convinced the hardliner, I imagine there shouldn't be much opposition. Unless I'm missing something, of course.