I'm going to expand on your questions. If I misinterpret them, please tell me.
Basically, individuals give certain information in order to get a service. One of the consequences is that information is communicated at the time the service is provided. In the case of Amazon, for example, the company uses the information of people who are like you or who share your interests, that is, people who have liked a particular book. I would say that too is personal information to an extent, within the meaning of the definition of the term.
The conclusion that Amazon takes from your interests, for example, that you like detective novels, is actually the result of your personal information, but that conclusion itself becomes your personal information too: your actual or potential interest in detective novels is personal information about you.
The role of the state is to define what personal information is. In that respect, I think that the legislation is doing a good job, because it provides a very broad brush that provides me with the interpretation that I am giving to you.
Is it the role of the government to prohibit the use of personal information? No. The use should be regulated, but it should not be prohibited.
Have I answered your question?