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I don't know about Ubuntu, but while installing Debian the installer makes it very clear what popularity-contest does and asks the user for explicit consent.
It also makes it very clear that this setting can be changed later at any time.
The default option is "I do not wish to participate", so if someone isn't paying attention during the install process and just hits 'Enter', their privacy remains intact.
This, IMO, is the perfect way to do telemetry.