Insider trading is illegal even for non-employees. Sharing insider info with a spouse or sibling who trade on it will get all parties involved on trouble with the SEC
Usually the information these types of analysts are trying to collect isn't really "material nonpublic information" in the somewhat narrow sense of insider trading law. Some of them aren't even in the investing industry but rather work for advisory organizations like Gartner. There's sort of a wide gray area between clear MNPI and information that the company just doesn't publish. Things like employee counts, general product plans, subjective opinions about user feedback, etc.
At least back then, they were straight asking for MNPI, although I think back then it wasn't called that. Whatever information the person was willing to provide, these people were willing to take.
Gonna need a non-right-wing source for that “frequent” claim.
Here’s some senators (mostly republicans, but also Feinstein — can we please recall her already? she has late-stage Alzheimer’s, for fuck’s sake) doing it blatantly: