I'm surprised it has such a harsh name. Years ago I was wondering what would happen if people just came up with random data, e.g. derived from the own personal data, thinking about crawlers, automatized personal data processing. But I'd just call it creating garbage data because that's what it is. Eventually it will be impossible for an algorithm to distinguish between real and garbage data. (And probably not only for an algorithm)

But I agree with you, it's probably the wrong approach. Personally I've deleted quite a lot of accounts/uninstalled bloated apps. In addition I use tools that actually set additional boundaries, but I'd prefer if the apps wouldn't be so data hungry in the first place.