I think more information being available is surely better for the consumer (but worse for the service industry). All the new vehicles that use a CAN bus or similar network have computers that are communicating and monitoring with much more sophistication than simple OBDII codes. Of course the technology exists to display more detailed messages to the driver- take GM's "Tighten Gas Cap" message, for example- in some cars, this evap emissions code just throws a CEL. The industry's attempt to control the diagnosis information with OBD went a little too far, and now so many people just ignore the CEL. For example, take a P0115 fault (coolant temp sensor)- if the car flashed a message like "Attention: Electronic sensor fault detected that will cause poor fuel economy and possible engine damage...", don't you think the average person would be more likely to take care of it? With a simple CEL, the average person is more likely to ignore it and complain that they get bad mileage and can't pass smog. Sure, some people would still ignore the information, but that's no reason to withold it.
Also, how many people do you know that think "Service Engine Soon" means oil change? That's a huge misconception, IMO. Every time I ask someone how long that light has been on, I hear "Oh, I just got the oil changed. They forgot to reset the light." Ugh.