I still think of this as a leap of faith – will microG solve all our personal privacy needs! Maybe re-reading this article microG - What you need to know, A conversation with its developer : Marvin Wißfeld helps to inform.
The article starts with a personal introduction to Marvin Wißfeld and his background and motivation. I think that the concept of switches for some features (as the OP) reflects user preferences for either “complete faith in microG” or the further distanced approach which some might prefer.
The article might seem bordering on historical now, with a section on Exposure Notifications; but this was and is an example of how individuals have quite different views on how to escape the “user data harvest” by Google.