1) If you are a consumer user taking advantage of free things, information about you has value to the provider. In this case, it has value to Google as an adtech company. But it's also true that Google historically has been very happy to provide free services to users for altruistic purposes, and continues to do so. This can lead to their early demise, but c'est la vie. How things are prioritized for development, much less scheduled for launch or deprecated at Google, are some of the most misunderstood processes/lore in tech.
2) If you are paying Google for product access, that is completely different and a) your data is not mined for advertising nor are ads displayed to you, and b) you have access to paid support.