If this post ends up [dead] it's probably for that reason, and not part of some conspiracy on Color's part.
For example, say there are four phones, in a square, and they all have color enabled, it would be possible to tell that they were all facing the middle of the square. From there, it'd be cool to stitch together the images and create a reverse panorama -- think of something like 'Streets' view, wherein you can 'enter' the scene and move around in it, from a variety of angles and perspectives.
At least, that's what I'd use it for.
http://news.ycombinator.com/item?id=2367299
http://news.ycombinator.com/item?id=2367277
I am not interested in their ability to get a clear picture of my surrounding through the sensors in my phone, or of the phones around me.
It is amazing tech, if they have it -- But I don't need that.
Having control of how your data is used is nice, but it's not helpful to throw around terms like "evil" for such small things.
People get really trigger happy with "1984" on the Internet and sometimes it borders on ridiculous. Orwell didn't have a picture sharing program for handheld computers in mind when he wrote his book.
Would you be okay with the government sticking cameras in your house? What about your bathrooms? That's data collection.