For privacy "no data" is better than "permanent encrypted data". I do think LN is currently developing in a good way. Also more devs taking care of privacy is better. More competition is better than no competition. I would use it, like I would use MWEB with LTC, and CashFusion with BCH. I still would prefer to fund my lightning transactions with Monero. But let's be honest. The main problem currently is not the privacy within the mentioned systems, but interacting with fiat surveillance shit companies that do not accept LN, MWEB or XMR transactions. The problem that hinders privacy the most is stuck adoption. And without rapid adoption they will close the avenues for merchants. They bankrupt the small and midsized companies and dictate the conglomerates to only accept transparent coins.