- Heatmap views of where people hover and start to type
- capture of individual sessions to research support cases
- Better understanding of user flows through a site or web app
And all of these tools, at least the reputable ones cited in the article, allow you to mask fields or parts of the screens so that PII isn't captured, and reputable companies do that.
The other part of this is that I don't think the article captures well is that these tools aren't used for targeting of ads or personalization or "spying" in the sense of malice, but to try to better understand users, what they're trying to find on a site, and clarify pain when using applications. I also think the people that use these tools, generally speaking, are perfectly fine with blocking them, since it's meant as a diagnostic and analytic tool.