All those things can be done locally on the phone only and without any server-side data processing. Without investigating into Google/Android terms of use I can bet they are NOT done locally (I might be wrong, this is a guess).

Ultimately it’s the consumer’s choice whether you want to buy your personal mobile device from a company that makes+sells phones for a living or from a company the sells ads for a living (no bad feeling against ads) and also makes+sells phones on the side to augment those ads.