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I think revealing the CP should be seen as a chance. Right now veteran ranks don't really tell anything about the experience of a player. With the CP being visible, we can tell how long a player has been around, which gives a good insight about what to expect from them. The most frustrating activity in ESO is doing a dungeon run with a pug group that continues failing because somebody does not know what he is doing and refuses to listen under the banner of being a casual. If I only have a set amount of time, I don't want to fail because of someone who lied and keeps messing up. Doing a learning run with someone is IMO a different type of activity and as it takes time, it is not something I want to be forced to do because of this behavior in many individuals.
For Cyrodiil it is also very important to know, because it tells you if you stand a chance against someone. It would be neat if you could add the monster difficulty visuals to players with 100+, 200+, 300+ and 400+ CP.
So hiding them completely should definitely not be an option. Limiting the display to the cap is definitely worth investigating, as it does not have any merit to know more than that he has 501 and it may end up being an issue for some people. Hiding anything below the cap is just unfair because it makes it hard to assess the real strength. Maybe allow to hide the exact number, but still show the range of hundreds, like 1xx, 2xx etc?
EDIT: People being denied to join a group or guild will always happen. If they don't show the CP and somebody doesn't want them to join based on this metric, they will find other ways. Always.
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