To be honest building things this way seems like such a competitive disadvantage I don't see how it could ever work at scale. Certainly all the big players are using them. If we shake our heads at the little players doing the same, we're just going to widen the moat
If that's true, there are many companies paying thousands -hundreds of thousands unnecessarily. Why are they choosing to throw away their money?
This is a fundamental property derived from information theory, but also confirmed time after time in practice: https://www.theguardian.com/technology/2019/jul/23/anonymise...
Data anonymization is a myth sold to politicians to whitewash data collection.
But in any sufficiently complex real-world database, it is a trivial step to map these pseudonymous tags to actual users, and thereby undo the obfuscation. It provides no actual privacy protection.
And the privacy IS the issue here.
I get that I am making a general statement from your original narrow scope so correct me if I'm wrong that you mean THIS bad thing is fine but other bad things are still bad.