Google just wants to be the only first-party that hits everything, making them a gatekeeper for 3rd parties that collect this data directly now. This is simply a business move, Google does not care about privacy.
This is similar to what Apple is doing on iOS: They are limiting the ability for 3rd parties to track users, BUT Apple is still quite able to track users even more effectively than anyone else ever was. It's no coincidence that Apple is also in the advertising game, and trying to play catch-up to Google. Of course Google is able to track anyone on Android as well as Apple can on iOS. I'm wary of both Google and Apple (and Microsoft too), but at least if these companies horde the tracking data, then it's not on the open market for anyone to use (until they get hacked and it's all exposed, that is).
The hardest part of climbing the ladder of success is getting through the crowd at the bottom.