First of all, if you disagree, I would like to direct you to the following page:
http://www.google.com/intl/en/policies/privacy/#infocollect

Specifically this part:

Transparency and choice

People have different privacy concerns. Our goal is to be clear about what information we collect, so that you can make meaningful choices about how it is used. For example, you can:

Visit your Google Account History for settings that allow you to control the collection of personal information from Google services, such as Search, YouTube and Location History.
Review and control certain types of information tied to your Google Account by using Google Dashboard.
View and edit your preferences about the Google ads shown to you on Google and across the web, such as which categories might interest you, using Ads Settings. You can also opt out of certain Google advertising services here.
Adjust how the Profile associated with your Google Account appears to others.
Control who you share information with through your Google Account.
Take information associated with your Google Account out of many of our services.
Choose whether your Profile name and Profile photo appear in shared endorsements that appear in ads.
You may also set your browser to block all cookies, including cookies associated with our services, or to indicate when a cookie is being set by us. However, it’s important to remember that many of our services may not function properly if your cookies are disabled. For example, we may not remember your language preferences.

Information you share

Many of our services let you share information with others. Remember that when you share information publicly, it may be indexable by search engines, including Google. Our services provide you with different options on sharing and removing your content.

One section of that hyperlinks to the Google Account History data collection page, which allows you to halt data collection related to yourself for in different areas.

Even if this wasn't an option, the way a search engine itself works is by indexing pages and search results. By using the search engine (in this case, Google) you are consenting to provide the information you're giving the system to the company. If you are searching for something so awful that you can't use google, and you don't want to turn off data-collection, then you can either learn2deepweb or use an anonymous search engine that is specifically made to "safeguard" your search data.

P.S. Nobody cares if you're looking up anime fanart or words on an online dictionary so that you can understand Meta's economics posts; not your neighbor or your peers, much less the POTUS.

There are people who think it's not okay?

Personally, I just find their efforts to personalize the adverts to be a little obnoxious. As if watching one anime video that some weeaboo here posts means that I care about the next DBZ movie or something stupid.

"Please note that even when this setting is paused, Google may still use searches you make within active sessions in order to improve the quality of your search results."

Translation: "Please note that even though you specifically opted out of this, we may just not give a fuck."

I see your point, but I just thought that was kinda funny...

Exactly.

I'd rather just go back to having related videos on the side instead of suggestions, but whatever.

I suppose, but it's not perfect. Even after having opted out of it, I'm still seeing irrelevant shit in my feed.

I'm glad they're apparently trying to take steps to improve it, but honestly, this should be one of those things that I shouldn't have to discover on a separate website months after its implementation, you know what I mean?... The personalized ads should give you an option to opt out of them on the widget itself.