#1 is so obnoxious. No Google, I won't do free work for you. At least offer me some store credit.
But besides that, I think the "payment" you get in return is the quality of Google Maps itself. Features like being able to tell when a restaurant is most busy can't realistically exist without automatically collecting data about users who are visiting it throughout the day.
Maybe I'm in the minority, but I find data collection of that sort -- where the data is directly being used to improve the product -- acceptable. What I find much more unacceptable is tracking for the purpose of showing ads. Although companies try to say they're "improving the experience" by showing targeted ads, I'd rather not constantly be bombarded with things that are engineered to extract as much of my attention as possible. (yes, I realize location tracking is used to target advertisement, which is why I keep location services enabled and block ads)
Disclaimer: I work for Google (but not on Maps)
Never work for free.
When you're "deleting" things from services like Google Drive, it's better to think of what you're doing as "hiding things from yourself". It's unlikely that Google actually deleted that data in a way that prevents them from accessing it.
The help page has this vague statement saying "Those points lead to higher levels of the program, as well as benefits like early access to Google features and special perks from partners"
Obviously covering their backs because "special perks from partners" could mean anything