If the advertisers, Meta is going to be accountable to advertisers to an extent in terms of what they measure and report and that requires data. Is this even hard to understand??? If this were your service, you would have exactly the same two options to pay for it.
If you don’t like Meta or advertisers having data about you, don’t use Meta’s services!
Acting like there is some “human right to use Instagram on your own terms” is deeply mysterious to me. There isn’t. You know how the deal works. You get the service and they advertise to you.