No, you’re not being paranoid. Sites really are watching your every move
arstechnica.com
arstechnica.com
Blocking all scripts (at least by default) is the only solution.
Collection is easy. Just capture every key even and read the location of the the mouse in a sufficiently tight loop. Timestamp everything, bunch it and send it to the server on a regular interval. You can do it in 10ish lines of JavaScript.
Playback is the hard part, depending on your infrastructure. But if your site is simple enough you don't even need a library; just load up the page the user was on and play back the data.
I'd be surprised if there isn't already a Dropbox company out there going the final 20% on this "just rsync it" comment though.
Not really - the implementation flow for tools that do this sort of thing are typically:
1. Register account 2. Dump JS snippet into page 3. Start watching live user sessions