Yes.
This allows you to expose a Telemetry collector on the datadog agent port 8126[0], allowing you to collect Application Performance Monitoring (APM) traces from any APM-enabled datadog library[1].
If I had to guess, DataDog's argument is that they don't want you using the engineering hours they invest into their libraries to have DD do the heavy lifting of collecting APM traces and send the messages off to another service.
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0: https://github.com/boostchicken/opentelemetry-collector-cont...
1: https://docs.datadoghq.com/tracing/#send-traces-to-datadog