For a linux distro, my expectations are that it's "free" but support will cost you money. My expectation is not that it's "free" and the OS will spy on you and report back to HQ so sales can make more sales.
If I don't give personal information on installation my expectation is the product is not harvesting or forwarding that information (For example, I expect that with Facebook, I don't expect that with GIMP).
Both are certainly wrong IMO. MS for giving personal info to a 3rd party and Canonical for bundling spyware with their OS. Both are super icky.
And you're selling the information in order to get tech support from Canonical, otherwise you can get it without selling your info (but won't really receive tech support).
As an aside, "pound of flesh" doesn't mean "payment", it means "something that is one's legal right but is an unreasonable demand (esp in the phrase to have one's pound of flesh)", both in Shakespeare and in current usage.
Unless you feel Microsoft's price is unreasonable and you have no other option, "pound of flesh" isn't the right expression.
Something like "they've taken their cut" is more accurate.
An unstated assumption of using any "free" product is that it's not actually free. Canonical screwed up, to be sure, but I do think many of us just expect getting harassed by salespeople to be the cost of using a "free" product.
Microsoft, on the other hand, charges me by the hour for using Azure. They've taken their pound of flesh, so my business expectation is that I'm going to be left the hell alone for anything other than billing matters. Them sharing the data in the first place, for something I've paid money for, FEELS like the bigger violation to me.