There must be a middle ground though. It can't be necessary for me to share my location data with an app for analytics, nor should it be necessary for me to provide a timestamped personally identifiavle breadcrumb trail, just so a site can know how i navigated.
History is littered with beautiful products that only like five people actually wanted. I love the Chevy Volt, it fits my use case perfectly and is everything I would ask for in a hybrid right now, but it's sales numbers were objectively crap. It was basically a Chevy Cruze, but sold something like 1/20th the number of units over the same time period; I'm not surprised it was discontinued.
Analytics-driven design leads to unexciting products that are useful enough to most people, with only occasional forays outside the mean when a subteam manages to launch an "unnecessary" feature with neutral metrics (until another subteam discovered the feature can be turned down with neutral metrics). It's not surprising companies love that style of development.
The only question they're answering is "how do we maximize our profit?". If that happens to mean adding features users want that's just a nice side effect.
I work on a live service, and we use analytics to determine the impact of a crash. If someonr crsshes, often they go straight to reddit and conplain If you took everything at face value online, you would never correctly assess the impact of an issue, and you'd spend all your time fixing rounding errors of issues rather than improving the experience for a large number of people. If you ask people, they'll tell you it's the worst issue, even if it's never happened to them.
So I'm curious how privacy-focused mods figure out which features users most want without being able to track users. It seems like a huge risk to remove a feature that could be your killer feature but you just don't know.