This is all true, except for the user data part. If Google were a billboard company that tried hard to get people to look at its billboard, that's fine. If they're constantly observing by scanning emails, calendars, browsing and location data that's another.
Data collection is standard procedure as well. Most ISP's keeps a record of every website you visit, most net providers keeps a record of all locations your phone has visited etc. Only difference is that most companies just sells these to some data broker like Equifax or similar while Google uses it for their own purposes.
Google didn't do any innovations at all in this space, they just had more data and didn't share that data with data brokers so they could do more with it.
Honestly, I'd rather look at subtle Google ads than the large, brightly-colored eye-sores that span our landscapes selling adult book stores, fast food, and Jesus.
