It literally privileges people in countries outside the EU by giving them more rights than those inside.

Which many people inside the EU would observe seems completely consistent with EU behaviour.

Edit to add: "Being misled" would refer to the way the EU was sold to many participants in earlier decades as an economic union, and not an all encompassing political one, with it simply ratcheting that way. Whenever objections occurred referenda would simply be repeated until the populations complied. It's far from the exercise in democracy that proponents promote. (This is distinct from saying it is _all bad_).