It's just not possible to use an Android phone as Google intended (and as the vast majority of users actually do) without that tracking mechanism taking center stage.
My solution is to disable or uninstall Google Play Services/apps and I never create a Google account. Also, wherever possible, I use a rooted phone.
The penalty for such action is that many of the attractive so-called free services are unavailable to me. However, the benefits of closing down or uninstalling all unnecessary services and apps and disabling JavaScript are that my battery now lasts for days, ads are a thing of the past and the phone and internet access are much faster.
I accept however the vast majority of users either aren't capable of making such a tradeoff or aren't prepared to do so and Google knows that—that's why it's a winner. For Google, users like me are just insignificant noise.
These things are not as tightly woven into the OS as you make it seem.
It is very much possible. GrapheneOS, CalyxOS, roll your own AOSP-based image.
A completely degoogled Pixel series is even practical and realistic for casuals. As you say you miss out or have to fiddle a big for many apps which break without SafetyNet and other malware.