Earlier quoted context omitted.
I think "tracking" is a bit misleading here. It's product (search) usage activity. None of the Workspace data you provide is ever used outside of Workspace, nor is it used for any other purpose than for the benefit of you and your users (we can't create machine learning models from your data to improve the experience for other customers, for example, without your prior consent), and that data is never used for ads.
You challenged the tone of the question, but you didn't attempt to answer it. Do you believe that nobody in their right mind would want this functionality turned off?
What is a double-edged sword is how this history is being used.
If it's just about offering search history for each individual user, then it's not a privacy issue and strictly an improvement in convenience. Turning it on offers the convenience, turning it off, removes it.
This is of course different if this history is used for other profiling and for ad sales, but we just learned that the data is not used this way. Now we can either trust them that this is true, or we don't.
But if we don't, what good is a setting then because if we don't trust them to begin with, why would we trust them that disabling the feature also disables tracking?
So tell me: Why do you believe that anybody in their right mind would want this functionality turned off?