I alwayse check this before downloading apps because i dont want apps to spy on me. And what i noticed in practise is that usualy payd apps offten dont collect any data and even if they do its less data than free apps.
So obviusly they collect that data to sell it and to make money that way. And if you think only big companies for advertising buy that data you are wrong.
Gowermants, secret organizacions and milioners who want to control your life is bying that data the most.
Yes i do pay attention to it and normally wont download ones that have data collection on apps that have no need for that.
Apple requires that binaries are submitted to them prior to be ing placed on the app store. This where the app gets analyzed to see if it matches their policies etc…. Im sure there are flaws in this system but i generally trust it since its in apples favor to have this info be correct.