I'm not really opposed to what you're saying, but it does seem to me like you dismiss the big human factor in these algorithms. It's not like it's just a system saying "You bought a red dress last year, here is a list of other red dresses you may like" -- Because the quirky frock she bought for work last year doesn't mean she wants to see cocktail dresses that just so happen to be the same color, or from the same designer, or in the same price range.

Instead, it's correlating prototypical woman A to prototypical woman B based on available demographic data and past purchase history, and suggesting to "A" some of the things that "B" purchased. The emotion and intimacy there was the human act of "B" purchasing clothing that she connected with.