I agree that it's absolutely awful.
I hate how mobile safari has removed URLs, I find it very disorienting. I'm constantly looking at the URL bar to see if I've navigated to a new page or not, to see what the page I'm on is named and its purpose is, and to make sure I went where I clicked and wasn't just redirected somewhere else (sometimes this can be really confusing, for example mobile versions of webpages that dump you out to the main page instead of the mobile version of the page you were hoping for).
While I can see the anti-phishing advantages of emphasizing the domain, hopefully this wouldn't come at the expense of the rest of the URL. Right now chrome grays out the rest of the URL, which is nice, but if you want to be less subtle that's fine too - turn the domain into a button, or draw a box around it or whatever, but please leave the rest of the URL passively visible.
I think a lot of the negative reaction also comes from replacing it with a google search box. Not very classy. There used to be just the URL bar in browsers, then there was the URL bar and the search bar, then chrome simplified it into just the URL bar, which allowed you to search if you prefixed with ?, and now you can search with no prefix. The new change would just make the whole thing a search field. If you want to optimize chrome for people who don't know how to use the internet and won't learn that's google's choice, but don't expect me to use it or recommend it.