The document is clear that it puts the default behaviour and explanation next to what users understand out of it and expect, just like what the privacy policy of Matrix.org is based of in section 2.1.1. We have asked several technical and non-technical people alike, from our family members to our friends to people in our communities. And the feedback is unanimous: They did not understand nor expect what we described.
In terms of actually of handling the issues, the scalar issue is one we brought up with Ben months ago in private as per your disclosure policy, and yet nothing was done. This is just an example of a long list of issues brought up over the years.
The point of the document is not to find justification for what is happening, but to inform users that it is happening. An attacker got access to your systems which contained logs from which such data can be gathered. It is important that users who self-host and do not expect such data to get out realize that it does so they can take appropriate action.
The document might feel alarmist, certainly. It does not feel alarmist because we wrote it. It feels alarmist because the behaviour described is happening and nothing is done about it. It is not discussed anywhere. Attempts to do so are shut down. But it does not change anything: leaks are happening right now on thousands of servers and for millions of users (up to 9M, as per Matrix.org figure) and every person who we showed this to before publishing had the same reaction: "I never expected such data to go out like this. I am worried".
As for Grid, we made a specific effort out of respect for the Matrix.org people not to mention it or steer towards it. Yes we have forked Matrix. No it is not hostile, despite your continuous claims to label it as such.
We think it is time to stop talking about all the good reasons why, in the 5 years it took to get Matrix out of beta, there was just no time to deal with such leaks. We think it is time to start talking about how we can make sure it stops from happening and which decisions lead to it happening for so long unnoticed.
You wrote the software. Start respecting your users privacy.