This fundamental principle is embedded in all the software I use. I consider any software that doesn't adhere to this principle malware. When my PC crashes, Microsoft asks me if I want to share information with them about what led to the crash. I usually say no, but I appreciate them asking. When I use gmail, I do so with the understanding that Google has full access to the contents of my email. They promise me that they won't do any funny stuff and I accept the conditions of this contract in exchange for free email.
I never entered into such an agreement with CarrierIQ. I've never even heard of CarrierIQ until this week. Yet despite this, they are logging everything I type into my phone, and sending some portion of the information that they log.
If I offered you $100 to install a program I wrote that logged every keystroke on your computer and sent some portion of this information to my own server over TCP, without giving you a privacy policy, you know very well you'd never take me up on this offer. So why is it ok with CarrierIQ?
The focus on how much information is in 10GB is beside the point. The point is that CarrierIQ has been demonstrated to have the ability to read and send everything you type into your phone. At this point we're just hoping they're the good guys and won't do anything overtly evil. But what's to stop them from calling the following function on your phone?
if username == 'tptack': sendStoredData()