That argument is simple extortion. Secret telemetry is never required, period.
If people are unwilling to volunteer such data, then the devs simply have to do without. If that means that software won't improve[1], too bad.
[1] Which isn't what that means. Software has always been improving even back when spying on people wasn't a feasible thing to do at scale, so spying is clearly not necessary. It's just cheaper than the old ways.