No, this is not some insidious plan of Orwellian proportions aka 1984. In spite of what newspapers would have you believe, this information is not being maintained in some East German, cold war style database. The purpose is much more mundane, and much more innocent. Believe me, very few webmasters have time or inclination to look or care about what you personally have done on their web site.
This tracking is simply a function of every decent web server on planet. It is essential to management of any credible web site. In fact, if you are a webmaster who has access to your server logs, you can determine exactly what's going on with your web site at any time. If you cannot get to your server logs (and few free hosts will give you that access) then you are stuck with counters and such, which are a poor substitute for real thing.
What kind of data can you get from your server logs? (Note that Hitbox and other similar services provide many of these functions as well.)
How many visitors do you get for each page of your site? - This is very important so you can determine where to concentrate your efforts. For example, if page A gets 100,000 visitors and B gets 10, then you might want to sell ads on A and somehow improve B (or eliminate it entirely).
How long are visitors staying on each page? - A very useful piece of information which can tell you if people are actually reading your pages or just surfing past them.
What pages are your primary entrance pages? - In spite of popular belief, visitors gain access to your site in every way possible. It's often true that majority of your visitors may never even see your home page. This kind of statistic allows you to determine which pages your visitors are landing upon. Armed with this information, and you can determine areas of your site which deserve your attentions. For example, if majority of your visitors are entering your site on page NNN instead of your home page, perhaps you want to include very obvious links to your index on that page.
What are your exit pages? - Even more important is pages that are causing people to leave your site. You can examine these statistics to see if you are losing visitors needlessly, perhaps due to slow loading, bad content or other reasons. You can correct these and keep your visitors longer.