I agree, targeted ads are valuable but when you’re getting this granular the computation, network and storage costs start to exceed the marketing benefits. It’s unlikely to increase conversion by much, and almost all companies and brands that could take advantage of this at scale are going to really struggle to actually implement a campaign that does this (because it’s hard to figure out and test what to target).
They are more likely collecting this data to use it to convince CMOs to continue plowing money into Facebook ads, even though they’ll never actually use it. The power that comes with being able to control the population through government relationships is a long term strategy to avoid any government sanctions, nationalisation, taxation etc.