Personally I'm fine with a company I choose to do business with storing information about me and about how I interact with their services. It just seems obvious that they will need to do this in order to provide their services. I understand that some of this info may be more than the strictly necessary minimum, but I have no evidence so far that any of this info has been used for purposes I consider nefarious. If they do, ok I'll reconsider.
I do understand the argument that they're providing an option to opt out of tracking, and that some of this data appears to be what is reasonably considered tracking info. That's a potential concern, sure, but again are they actually using this for anything I'd consider nefarious? If so then again I'm interested, but if not then ok, they should stop doing it, but that's as far as my interest goes.
If you think it’s not a risk because they don’t sell it to advertisers, think of all of this lifestyle data, times a billion people, being used nefariously to undermine human rights by someone worse than whoever you think the most repugnant US president has been.
The collection of the data is the problem, because there is a player in the game who is not Apple but has 100% access to all data that Apple has.
If it were the FBI collecting all this dragnet data in bulk, would you be concerned or alarmed?
I know it seems weird to recommend a Google phone, but one can completely eschew the issues around Google tracking, by not using Google services, or using them within the on-device sandbox giving them standard privileges.
If you want to support the fight for freedom and free yourself from both Google and Apple, consider a GNU/Linux phone, Librem 5 or Pinephone.