I beta tested the Kite product when it first launched maybe two years ago. I don't use it today but I would try it again. Since then they've only tightened down on permissions and made things clearer.
Kite was also not the first to run ads in an IDE plugin (Wes Bos has sponsored several), at least not in Sublime. Personally it's not my preference to have ads either but ultimately this is up to the maintainer of each repo. The tool is still free to use. It clearly states that using the cloud engine will upload your code to do analysis in the cloud. It's 2-3 sentences, not like it's buried in some long EULA.
Shame on the article for labeling inserting an ad as "taking over" and labeling an ad as "spyware"… pure clickbait targeting non-devs.
The new Kite engine also clearly states it is a cloud-based service and they build integrations for their service. The whole industy works the same way. You don't have to use their engine to use autocomplete-python and its opt-in too.