Right now if activity tracking is off I think you can't even use Gemini to do stuff like set alarms so it's worse than Google Assistant with activity tracking off.
Since Google Assistant is going away I think this is an improvement for people who want to keep activity tracking off.
It would also be better if you could create calendar events from the web version of Gemini with activity tracking off so you aren't punished for not letting Google train Gemini on your data imo.