NancyLebovitz comments on Changing Systems is Different than Running Controlled Experiments - Don’t Choose How to Run Your Country That Way! - Less Wrong
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The problem there is that frequently privilege is taken to mean, not just ignorance, but that pain which a non-privileged person causes a privileged person should be treated as irrelevant.
I agree that this is a failure, though I do not think the problem is with the definition of privilege itself. As a parallel example: Social Darwinism (in some forms) assigns moral value to the utility function of evolution, and this is a pretty silly thing to do, but it doesn't reduce the explanatory usefulness of evolution.