Its good because that is what is paying for all these apps.
And for developers, you are forced to enter the spy-on-your-users rat race because everyone expects free shit.
I would happily pay for a quality product that respected my privacy.
But I'm, what, a 0.1% minority of global internet users?
Meanwhile I try to find suitable games for my kids to play or video's to watch, and 9 out of 10 things I find have monetize through some quality-reducing, interruptive, annoying ad-driven modus operandi.
It's not just services or software: consuming content is equally degraded by the expectation of limitless quantities of free shit.
I remember years back talking to friends and people I knew who all said things like 'think of the data we're collecting' - nobody thought about asking the end user if they wanted that data collected.
It's not about 'oh no, I have to spy on my users;' the users aren't considered at all. If they are, there are patterns built to prevent them noticing and limit liability. It's pretty vile.
Ethically, you should only try collect the data you reasonably believe your users would be ok with you collecting if they knew as much as you did about what a bad actor could do with it, and you should ask them first.
If you are a weirdo who is not available to communicate with like everyone else, people stop being your friend, you economic opportunities reduce and so on. If your more late because you got lost more often, because you don't use gps, people don't want to associate with you as much and so on.