Why don't people let the police install cameras in their home!? It just cuts down on crime. If you aren't committing crimes you have nothing to worry about.
This is an incredibly bad read on what telemetry is and a terrible analogy. Total hyperbole and non sequitur.
Most telemetry in the real world is literally just like Sentry and "oh there's a crash or error. Here's what the user may have done when it happened" or "this feature is not used as much while this one is very popular". Equating it to police spying on people and imprisoning would-be criminals or innocents is utter nonsense
1. Developers managed just fine in times before pervasive telemetry was normalized.
2. How "data driven" development usually fails in practice, and is a false promise - that is indeed a big and interesting topic, spanning across issues like Goodhart's law, or whether the data is used to "improve your experience" as if the user was a Thanksgiving turkey.
3. But even if you are of pure intentions and able to avoid all the pitfals of 2, I have no reason to believe that. As a user, I don't know you, I don't trust you. All I know is that, before telemetry became something developers suddenly can't do a good job without, it was the domain of spooks, criminals, and shady advertisers. We used to call it "spyware" and classified it as a form of malware. What reason do I have to believe you are and will forever be using this data in my interest, and not against it?
4. Between HIPAA, GDPR and various cybersecurity policies of one's organization/employer, your benign, unadvertised, opt-out telemetry may be landing some of your users in hot water - and it's the major reason why organizations keep getting stricter about what can or cannot be installed on work machines. Savvy users will prefer to avoid your telemetry-rich product, rather than to take the risk of a fuss with IT or Legal if the product captures some bits of protected information.