I don’t think it’s paranoid. Best case scenario, they really are using your data ineffectively, which imo is still bad because you are not getting any benefit from it. But worst case scenario is a government coming into power that abuses this data to extents we can’t possible fathom today.
That’s not entirely accurate anymore.
https://www.scientificamerican.com/article/why-is-homo-sapiens-the-sole-surviving-member-of-the-human-family/