Saying folks that are privacy conscious 'deluded' is a bit of a stretch as well as assuming their reasons for deciding.

You list a bunch of services Google provide for that $5 and yes, no doubt you can extract good value if you want to use all those things, and also don't mind relinquishing privacy for the content you choose to put on there. FWIW Gsuite is more like $7/m where I am.

For me personally, you can list those bunch of things and gmail is the only really useful, day to day tool - mainly because their spam filtering is better than most. Essentially that's where the only value is, for me.

Also bear in mind Google's history of retiring products, hardly 'iron clad' reliability.

For me, their lack of privacy ethos compounds the problem of them having a monopoly on search, and to a large extent information discovery. That, alongside their huge reach in how they can gather information on people to aid advertising, via Chrome, Android, DNS, analytics... that huge list. Sleep walking into a society where a handful of large corps know everything about you isn't necessary.