If I want to give Google Maps access to my location it means only Maps and for limited scope not all across Google ecosystem.
Android is constantly nagging me to turn on location and wifi scanning for example to use Google Home. It doesn't make sense - they could use SSID of my home wifi to make sure that I am home. Where my home is is not their business.
Plus I do not object to ads in Maps based on my behaviour in Maps. I do object against that spider's web that Google and FB is building around my entire life.
Even those that charge. E.g. google maps will charge the vendor and still track the user. A WSJ subscription will still have tracking code and third party js, etc.
As long as it's free for the service and there are no penalties, then of course they will try to collect as much data on you as you allow them to collect. But it's your responsibility as an internet user to prevent them from collecting anything that you don't approve of, and to block third parties from injecting their code into your equipment unless you vet that code or otherwise trust it. When stuff like spying and data collection is outlawed, this creates economic room for honest players to participate in honest business practices. We're just not there yet.