>There is no ethical issue here. The companies asking for your identity generally don’t need it and providing them with a persona could be argued is the more ethical route given the implications it has on privacy and mass surveillance.

I'd say, to quote a bad movie[0] that "the only winning move is not to play."

Giving those entities even a fake persona will negatively impact your privacy over the medium to long term. The better solution is for folks to vote with their feet and refuse to use such entities.

Sadly, that doesn't seem to be a popular choice, but that doesn't mean it isn't the right one.

[0] https://en.wikipedia.org/wiki/WarGames