Just finished writing this up, hope it clears out some misconceptions:
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I think we should add that the protocol itself and sending Grin p2p are different things. Once you send/receive Grin with another peer, you might expose your ip address.
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I mentioned this on gitter but I think it got buried, but under the cut-through section I think you can be a little bit more optimistic about how exchanges and pools may aggregate transactions before submitting them to miners, and this could actually turn out to significantly limit the inputs/outputs sent to the public chain. The exchanges would still have records obviously (but this is nothing new) and so its not water-tight privacy gurantee, but definitely a really cool and likely outcome, especially since it has such dramatic tx fee minimizing effects for exchanges.
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This is awesome. Thanks for putting it together 
Is there a document or discussion regarding best practices and security/privacy considerations for users building transactions?
Not yet, I think we’re going to have a fairly rich ecosystem of wallets, so we should probably let that mature a little bit before coming up with best practices.