Not seeing how this is similar? Telemetry data used to detect OS bugs vs highly intrusive data collection that is used for advertising?

Consider a scenario where a non-technical person whose friend blocked telemetry through the hosts file for them, and they get a pop-up saying that the hosts file is risky. It's stochastically likely that it's scary enough that they'll undo the privacy-preserving changes. In this case, Microsoft is using their weight to push users away from privacy.