I'd rather see laws to have it disabled by default. People who don't mind can then opt-in again.
Honest question, what is a good reason to do this?
My Logitech software sends telemetry to Logitech.
My VW apparantly sends my GPS coordinates.
How is this useful for improving their hardware?
The most obvious metric that everyone wants to know is failure or crash rates. After a software update it's always good to know if those rates went up. Those errors may be recoverable, but it's good to try and understand them to improve reliability. Maybe pairing android auto with specific phone models is more problematic, or maybe trying to pair Bluetooth is particularly bad under specific conditions like high thermals in warmer climates. It's pretty difficult to interop testing with all possible parties in all conditions.
You know what will help in those situations ? Testing.
It is expensive, i know. Why not skip it and just analyse the KPIs from the telemetry. /s
Tell that to Microsoft. Although their products have telemetry, they become shittier every day.
I'd rather focus on standardizing a transparent and privacy safe way to gather these metrics. Consumers would know what metrics are collected and there would be guarantees that privacy is kept. There are ways to accomplish this today.
Providing a way to disable metrics is never going to be sufficient for anyone other than a power user.