It depends on what type of user one is. If one wants to be spoon fed and data-raped by Google then your statement is true.
But there are other options that make an Android smartphone both functional and viable without both a Google account and Google apps.
Except for test accounts on test machines sans anything of any use to Google installed, I've never had a Google account and I manage perfectly well, and I've used Android since version 4.
On rooted devices I hack Google to pieces, all Google apps are removed so is just about any other software that communicates with Google. On devices that aren't rooted, I'll disable all Google apps including Google Play Services and the Play Store, make sure a firewall is installed and that all apps except those with explicit permission are blocked from internet access and rerouted via a VPN to a nonexistent network. And so on, and so on….
Everything I want to use works, Google software is replaced with apps from F-Droid and other sources of non-Google origin. Still, I've no trouble viewing YouTube and I do so without ads, also I've no difficulty using the Play Store and downloading apps without a Google account.
There's really nothing that Google can offer me in addition to the third party apps and services that I already use. This phone has 215 apps installed and a second phone has 307—these apps are sourced from both F-Droid and the Play Store. Most apps however are open source/from F-Droid, etc.
For those who don't want to go to the extremes that I have there are many halfway measures one can take to minimize Google's impact.
BTW, in the past I've uploaded stuff to YouTube which I've done with 'dummy' test accounts.