I recently started getting "targeted" bitcoin extortion emails that have your home address (or what they scraped from public records) and a picture of Google Street view, but they're all going to the email I used for a now-defunct online grocery
Ha, same here. Including photos of my house (well, actually my neighbor's house) and everything.
I'd be worried if 1) I hadn't seen many versions of similarly creative extortion emails over the years, and 2) if they hadn't use some obvious "donotspamCompanyThatWasHacked@mydomain".
Sadly, I can see how this may trick some people into sending money to scammers.
The advantages are numerous: tracking who leaked my data (many times before the company even noticed it), easier to spot spam (20 years ago spam filters were a lot less sophisticated), minimize credential stuffing (before Pwd Managers became the norm), etc.