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According to your document, when an event is setup as private, the activity wall is not viewable. This is not the case. I created a private event and was able to view the activity wall logging in as a different user.
I created two member accounts and re-test the event setting (private). The private event is working. I am not able to view the event activity unless I am invited.
When I log in using the admin account, I am able to view private event activity and is able to delete the event even though I did not create it. Is this how the Admin account is setup where it can view all private events and delete or modify them without being the owner?