microG still forwards the requests to the Google servers. Not sure what you mean by "tracking APIs"? microG is a reverse-engineered, open source implementation of a subset of Play Services, right? It's not obviously a better option: for instance, some things that are supported in Play Services are not supported in microG, and microG sometimes breaks (because of changes in the API).
> allows you to select alternative Location Providers
GOS does that, too.
> I do think GOS lulls users into complacency by focusing on the security angle only and encouraging users to install sandboxed GApps
I don't get that. It does not encourage them to install Play Services, it makes it available. Because for many (most?) users, it is important to have it.
I am not sure what you are trying to say: is your opinion that there is no point in using an alternative OS (like GOS, /e/OS, LineageOS, IodeOS, ...) or are you trying to say that GOS is not the most secure/private alternative OS?