At first I was concerned by this, but as long as the URL is accessible - by clicking the domain chip - I could see this being a good thing. Most non power users never directly manipulate URLs, so there's no real need to display them so prominently. The domain on the other hand is important, and showing only it without the rest of the URL serves to significantly emphasize it.

As long as there remains a power user toggle to show the full URL, seems like a positive change. Of course, I may be missing some edge case.