Ah, I had not seen the video. That clarifies things.
But, IMHO the person in the video is overreacting emotionally to what's actually in the agreement. Muting the video and just reading the text (pasted below), they're gathering photos of the phone and some diagnostics data, which includes info about other devices the phone is used with (it does not say they're harvesting user data off of those devices, just diagnostic data). Call count & durations (not the same as "who you called, and what was said").
They then list the specific purposes they use this info for ... to summarize: determining trade-in value & audit, troubleshooting the phone, improving products & services, and anti-fraud. Nothing there about targeted marketing.
I don't interpret any of this as nefarious or invasive. YMMV.
"By tapping "Agree" you agree that Apple
may collect images of this device, which
may be linked to the device serial number
as well as diagnostic data from this device,
and any paired accessories or other
devices, including the device serial number,
device name information about wireless
and wired networks you connect to, daily
count of call attempts and information
about app usage data and call duration ("di-
agnostics data"). Apple may use the images
and the diagnostics data to determine the
device's trade-in value. Apple may also use
the images for related audit purposes, and
to improve our products and services. In
addition, Apple and its partners may use the
diagnostics data to troubleshoot issues with
this device, to improve our products and
services, and for anti-fraud purposes."