If we accept that nothing is free, then we have to ask what the best way to pay for the so-called free product. In my mind it's either some sort of usage data, or it's via taxes.
I would guess in almost every case, the purpose of free wifi is not to do any sort of tracking, it's just to get you in the door. I know that I've picked hotels and other establishments based on the availability of free wifi.
Yes, though this is now becoming an expectation. I haven't done much business travel in the past few years, but now that it's ramping up again I notice how important the free wifi is.