I can kinda agree with the section describing all the problems with tracking, but there is not really an alternative approach presented.
The last paragraphs through in lots of buzzwords and lofty ambitions ("holistic approach") but don't give any indication how to realize those except for "go by your feelings".
I consider myself a good developer with useful debugging skills. I often "went by my feelings" when trying to find the root cause of a bug - however, to be able to do that, I need some information about the program and usually some way to interact and test hypotheses. If I've gathered enough information like this, then I can use experience to make educated guesses about what is going wrong.
Likewise, in the "real world", we always have a minimum of observable feedback that helps us judge our own actions: How people react to what we do, their body language, etc.
This is true both for individuals and for businesses: If you run a small corner store, you'll also be able to get a rough measure of success of your store just by watching how many people make come in and how many it to the counter.
In contrast, on the internet, there is, by default, no feedback at all - if you make a website and upload it to a server somewhere, it's more like running a radio station: Talking to the void, not knowing if hapf the city is listening, or only a handful or no one at all
So in order to get any information about whether what you are doing makes any sense, you need feedback.
I don't think intrusive tracking and surveillance is the only way to get feedback though. I think very basic analytics, such as counting the page hits, referral and "user journey" throughout your site are ok - those aren't very different from counting customers in a physical store.
For more detailed information, I think there should be more approaches to gather active feedback - i.e. give users a way to leave a message, point out issues they see themselves, etc.
It used to be hard to analyse this kind of written feedback at scale, but maybe LLMs could help with that in the future.