Product analytics may tell you what is happening, but they won't tell you why it's happening. To your question, I don't really have a good answer. From a B2B SaaS perspective, we try to complement analytics with a lot of video calls but that's not nearly as good as sitting next to people while they do the work.
It tells you what is happening that is easy enough to track and measure. Most empiricism in the business world is poser empiricism, people want to say they are "data-driven" because that is virtuous in our current culture but when push comes to shove no one wants to invest the time to do it properly.
Definitely not a replacement for watching people do their work but we've been using Cohere (https://cohere.so) to help us watch what our users are doing and how they're working.