That is a pretty big downgrade in rhetoric on your side: first you were claiming that their business is "surveillance", and that they "sell their users to advertisers" and now that you know better you try to shift the argument to data collection?!
The bottom line is that more data makes better apps, and yes, better ads. I doubt they know you better than "your mother or partner" because I don't know how to measure that (it's an anecdotal, and a fear mongering thing to say).
They collect whatever you allow them to, and they provide ample means of transparency and control. Not to mention the usefulness of their services.