The company has also updated the section relating to in-app purchases following the roll out of $0.99 snap replays. They made names visible for friends to find you, but according to the blog post, all of that can tweaked through different ways.
The language used in the policy is quite confusing, but as per Snapchat, these changes were made for better understanding, so that it would “read the way people actually talk.”
Company's Statement to Reassure Users:
Of course, a recipient can always screenshot or save your Snaps or Chats. But the important point is thatSnapchat is not—and never has been—stockpiling your private Snaps or Chats. And because we continue to delete them from our servers as soon as they're read, we could not—and do not—share them with advertisers or business partners.”
So now, considering this ironic privacy update, it's all up to the users whether they feel like continuing with the service.