Also the fear of telemetry being used to spy on users is overblown.
This misses the point. The point is that there's no way to stop it if you find it objectionable. If someone is collecting data on my against my will, they are spying on me. Whether or not they use that data for malicious purposes is irrelevant.
More and more software products add telemetry to be able to improve how their software works. It allows them to spend time improving the features users actually use and fixing their pain points. As a result they can build better products.
Yes, and in every case that they do this without informing the use and providing a means to stop it, they are behaving badly. That this is happening with increasing frequency is precisely why I started firewalling off all applications by default, so they can't send any data to the outside world.
I shouldn't have to treat applications like malware, but that's the world these people are creating.