On one hand: That's a really good point. Thanks.
On the other hand: Everything can now steal my data "just" so adverts can be shown. Really?!
To me that's more outrageous than the original points I listed. My device and my data are left permanently insecure, all to protect their adverts. Even though I purposefully don't use applications with in-built advertising (because they can't be trusted with permissions), I can't easily turn this off.
This really makes my phone suddenly feel like "A rented device who's main purpose is to deliver advertisements to me" instead of "Owned device that helps me managed my life and communicate".
its a difficult business decision for Google
It's a really easy business decision: User security, user privacy and user control are king. If each application wants to tie "functionality working" along with "internet access" and "advert was displayed" than each application can implement that for themselves. It's not hard.
That this is all baked into the actual OS instead with no (easy/toggle) method of user override is nuts.