There was a ton of discussion on this yesterday with our ShowHN [0] and we are considering what changes to make based on the feedback (some of which are inline with your suggestions).
We do publish all the telemetry we collect here:
https://docs.warp.dev/getting-started/privacy#exhaustive-tel...
And we are committed to making telemetry optional when we leave beta.
And it's definitely the case that command input / output are never sent to the server.
Login is a bit trickier as it's hard to build an app that leverages the internet and facilitates teamwork without understanding user identity. But point taken.