The problem is that outside of our niche of people who really care about tech, most people just care about the contents of the webpages they visit. They aren't reading/understanding the warning and have no context for making that assessment of safety and responding appropriately. They just know that they want to go to their bank's site or play the latest Mafiaville or whatever.

These changes in Chrome are teaching them that the red marks on the location bar are just a normal part of those interactions.