Unless I'm missing something, it doesn't collect your history but rather can test whether you have visited a URL before. While still a problem, it's certainly a different thing.
Yes, it would be crazy if it could collect history. But it can be used to target ads much better and create user "profiles" (and track users by cookies on a network of websites) and for example much better target products on an e-commerce website... It doesn't have to be used for evil, but it certainly can, and can be automated.