As a dual US/Canadian citizen, I'm really of two minds about this.
I hate living in a country where I don't have civic rights. It may be a small thing to some, but it means a big deal to me. I like to follow current events, and it bugs me when I can't contribute to the process in some small way. When I was living in Germany, I felt completely excluded civically and politically, and I can't say I liked that feeling. Being allowed to vote or serve on juries or petition my MP as a voter or even being on the electoral roll...they all give me the sense that I'm part of the country I'm living in.
That said, it does create a weird sensation when I am treated like a foreigner. Like when I have to go through the non-EU queue. Or when I'm played for a fool or gouged by the Home Office. That really stings. Part of my brain doesn't get it, and the other part has to remind myself that I am NOT a citizen. Yet. This is further complicated by the fact that I am here on the Ancestry path with a long family history in this country. I don't want to whinge because I know that I have it better than most. But still, to be given some privileges of citizenship but not all of them can be a very confusing experience.
So I can see the arguments from both sides. For myself it's been a curious ride being a foreigner and not at the same time. I reckon that that's what the Goldsmith report was trying to sort out.