Yet organizations went decades making fantastic and ever-improving software without telemetry. What changed? Why would telemetry suddenly become a basic requirement for improvement?
Using Firefox as an example, look at how many improvements they have made over the last 5 years. I'm not here to argue whether we need these feature or if Firefox 2 was the last version of Firefox that we needed. Firefox (or Chrome, or whatever) wouldn't look as great as it does today without lots of data.
So telemetry doesn't always improve the user experience.
If violating user's privacy is your way to stay competitive, then that's your personal problem. You have no right to spy on everyone just because you have problems staying relevant.