There is definitely the possibility that this can be mis-used, but this is the type of thing we all do every day.

It isn't an exact, pinpoint system. I don't think I implied that, nor does the article. It identifies people that might be a risk to leave. We all do this all the time with friends, family, etc., and look at their behaviors to decide if something is likely. I notice my kids are quieter, or listless, and I then make a guess that they are upset or not sleeping well, and then I question them. That's what the description of this system is. You examine some data, you make a guess, and you return that guess to someone that will then go investigate.

It seems that so many people hot button this to assume a list comes out that lists people definitely going to do xx. And based on that list a company does y (fires someone, moves them to a new job, etc.)

It doesn't, or it shouldn't. It gives you a direction to move in for further work.