I think this take is correct in some ways but incorrect in others.
A system that works entirely for a user, that they pay for, and that is entirely private to them, and acts as an extension of their agency doesn't have that problem.
The problem is not the context and personalization, the problem is the alignment with a user's agency and intentions.
Personalization is useful, it's just that today it requires the faustian bargain of giving up your data to another entity with ulterior motives.
That's how it works today, but that's not how it has to work.