this alone can be used to correlate a huge number of things since very often you have one household with a whole assortment of people and tablets, phones, laptops, xboxes, playstations, smart speakers etc all behind one IP address and NAT.
just having an entity like google know that your ip address is coming from a /24 in a /19 sized IP block that's known to be a comcast dhcp pool in a particular city/metro area is a huge amount of info.
other things happen as well. you have other people in your household who installed the facebook app on their phone and left geolocation/GPS permissions set to on? now your IP address has been correlated with a very specific latitude/longitude and the usage patterns of your (spouse, roommate, child, etc) who is using that app.
> collected for specified, explicit and legitimate purposes
If a malicious person had access to your account you want to know for how long they had that access for example.
> Store it because nobody knows what to do with it?