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Obviously they're talking about a very different problem, but I would agree with their assertion that obfuscation doesn't help if you still have a high signal-to-noise ratio. (They use a cutoff of one, which sounds reasonable to me.)
I would be interested in seeing applications to this specific problem if you have any? An SNR of 1 for browsing does not seem at all problematic here, but I don't want to read too much into that specific paper, as it wasn't really related.
Or so I've been told by security experts.
A quick google search found this paper
http://www.csee.umbc.edu/~hillol/PUBS/kargupta_privacy03a.pdf
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