We can use Sections to divide students into groups for marking and assign different assignment due dates at this Section level. When this is done, we may be adding particular students to a Section for private reasons - maybe if they have a personal issue, need more time, and really don't want anyone else knowing about it (quite rightly so). However, the problem is that Sections are also used to great effect for Teaching and Learning purposes, and we need students to be able to see which Sections different students are allocated to.
So my suggestion is that a new control is added when creating Sections, a True / False 'hidden from students' selection (also manageable via the API). It could be the other way around by default, it doesn't matter. (i.e. visible to students). In this case, when this 'hidden from students' is True, the Section name does not appear in the People Area to students or any other listing where Section details might appear.
This will ensure that Sections can be used to properly and confidentially manage the student journey for assignments.