There are key loggers and Key Loggers. If you need admin rights to enable it and it saves the keystrokes locally, then you probably shouldn't care. Anyone with that level of access can install something worse.
You can make any piece of software that takes user input sound like a "keylogger" with the right wording, that the word has basically lost all meaning.
Even if it's not malicious, I still think it is a rather serious professional mistake to ship a driver containing potentially dangerous deadcode.
This does.