Indeed, there are only a handful of analytics frameworks that control the bulk of marketshare, Google being the largest. Just banning the frameworks entirely would fix the problem for a vast majority of apps.
On-premise is not old fashioned. It is indeed a requirement in several countries, for many domains including finance, banking, healthcare, telco and such. When you include PII in your analytics service, it has to be taken care of explicitly. There are indeed a few on-premise mobile / web analytics platforms for product analytics purposes that you can deploy on your own servers and retain your users' data with your own rules with no dependence on 3rd parties (disclaimer: I am cofounder of Countly).
Just some minor pedantry - that should be on premises. Although it's pretty commonly misused, technically premises should always be plural when referring to a property/residence/place of business, and premise (as a noun) only means "a previous statement or proposition from which another is inferred or follows as a conclusion."
Neither of which show the passwords or credit cards users enter into input boxes, or replay the entire session and every single thing the user does in-app, like the software in question does. Did you read the original article on the software being used here? It's not analytics in the sense like the companies you mentioned are providing. https://techcrunch.com/2019/02/06/iphone-session-replay-scre...