I don't find it offensive, I just find it pointless. I also feel that in addition to your lack of neutrality for someone with no sides on this you seem to definitely have a heavy interest here or else you wouldn't have invested this much time in responses. I'm not against people offering opposing viewpoints either as long as they're meaningful. Your responses are barely a step up from the people that drop a "lolno" because everything you state has already been argued against. The faults of what you're trying to suggest have already been shown. You're being unnecessarily obstinate for no reason.
You don't even understand the concept of players being in the same spot does not mean the same as players being social. I got my crafters to 80 via firmament, and I crafted in the firmament zone itself. I did a large portion of my gathering in the diadem. Do you know how many times it was dead quiet?
A hide all other players toggle button would not change anything here. Your player will still be visible to others who don't have it on. You're still going to see shouts, yells and tells. You will still exist in game. It's honestly the best of both worlds.
Again, take yourself and your fear mongering elsewhere. Adding this option to the game is not going to harm the social aspect of it. Your multiplayer game is safe.