Virtual numbers protect against people stealing your number. They don't really do much against subscriptions.
If you sign up for a service and stop paying, it gets sent to collections, and then impacts your credit score because of unpaid debt. Whether you used a virtual number or not is irrelevant.
So it's not "insane" not to use virtual credit card numbers. To the contrary, it's just not usually worth the hassle. The few times my number got stolen and fraudulently used over the past two decades, I called and the transactions got reversed immediately. And those all happened after I used my card physically anyways, not online, so virtual numbers wouldn't have helped anyways.
And in the ones that don't, banks still get information about your late payments and unpaid debts; they just make the same determinations privately. The only difference is that it's less transparent to you, so you can't even check whether their information is accurate.
There's nothing "Orwellian" about it. There's nothing totalitarian about checking whether somebody pays their bills or not before you decide to lend them money.