This does nothing to make government less powerful.
It just makes government stupider so even if they decide they want to do the right thing, now they can’t because they don’t have the information needed to make effective decisions.
It makes the government stupider so there are more excuses to bring in better private solutions.
Handicap the public services if they are working well, then talk about how bad they are to justify for-profit replacement.
Or don’t and just exploit the gaps directly with better private data, whatever increases proximate wealth inequality.
It makes it harder for them to do things, that is both right things and wrong things. They are doing a lot of wrong things recently.
Making them less able to do whatever it is they might want to do is pretty much the definition of making them less powerful.
No, it gives them data to attack specific groups of people that were previously anonymized. The two options are less granular data, or data that can be abused.
There is no question the end goal is data that can be abused, and anyone left who would protest their actions will be fired and replaced with more sycophants.