Earlier quoted context omitted.
No, it's not. By requiring a phone number, Signal does not defend privacy. This is a binary question, there's not a grey area here. It doesn't matter that they're building a social network, or anything else. What matters is that it's not private so long as they require a phone number.
I'm not sure what was unclear about my summary of what Signal is doing. Here, let me put it differently for you: Signal's goal is to make all the messaging in the world that currently uses phone numbers as identifiers --- which, by a long ways, is most messaging in the world --- cryptographically secure. Hope that helps. You are welcome to have and to advocate for different goals. Please don't pretend your goals are…
This is a better explanation. However, these goals do not protect privacy. If Signal's main goal is to protect privacy, then they need to change their secondary goals to accomodate it.