Often, yes, which is why it took so long for me to start balking at it. But these days, even though the data does also improve their products, it feels so much more like an excuse to grab the data. Try removing Google Play Services' access to location data, for instance - it will nag you about it in apps like gmail, and try to guilt you into turning it back on, even though gmail has no need whatsoever for your current location.
> everyone who usually drives on this road is taking a detour, was there a accident or construction going on?