Not sure if it is telemetry data or not, however I do think there are some things Windows should report back to MS on. Things such as performance, startup, BSODs, core items that crash, and things like that. I do not think it should report back on what users click on what or where something is placed on a desktop. Use in person focus groups and other ways to get this data and like Paul was saying it should be an AND approach not an OR.

Give users choices and options, do not take the ones that only 5% use away.