What he's saying is incredibly beneficial to himself. How convenient for him to say that no one cares about privacy after he took away that option from his users.
The Blizzard Terms of Service note that this will happen following a request from law enforcement.
17.C Blizzard may, with or without notice to you, disclose your Internet Protocol (IP) address(es), personal information, Chat logs, and other information about you and your activities: (a) in response to a request by law enforcement, a court order or other legal process; or (b) if Blizzard believes that doing so may protect your safety or the safety of others.
If one chooses to play the game, after having agreed to have their records turned over in such a case, it seems like less of a moral issue. Another reason why people should consider actually reading their terms of service before agreeing.
It is not in fact impossible to express that sort of sentence in Piraha. Embedding is accomplished by "noun-ifying" a clause by adding "-sai". The debate is whether or not this suffix represents actual embedding/recusion. This debate has been discussed at length in Language and other sources.
Everett's claims are extremely controversial. Also, this article is over two years old; hardly news. There have been several articles in the last few issues of Language have discussed the "exceptionality" of Piraha.