I.e. spend more money to do things the TV can perfectly well do. We should make the spying illegal so we can use the devices we buy to their full potential without being sold to advertisers. "Give money to this other company that may or may not also be collecting data and may also sell you out in the future" is a suboptimal solution.

I don't think we can do anything substantial. So I'm going to just use this "suboptimal" solution.

If you want true, verifiable privacy and control, it's not an Apple TV that you need. Any old laptop or desktop computer can be used to stream content from the Internet using a Web browser or other "apps."

E.g. Netflix doesn't let you to stream 4k video in browser afaik. So no, it's not a good option.

Desktop OS also don't support Dolby Vision or fancy spatial audio formats.

Trifecta: Piracy + Local media server + Streaming device, either Apple TV/Android TV (without internet access).

No loss of quality, devices that could spy on you, don't, and those that would spy on you, can't. The only trade-off is some convenience.