The terminal is where I input my ssh passwords, my sudo passwords, crypto stuff, ssh keys and much more sensitive data. The fact that you even considered collecting stuff from me while using it is insane. I don't trust your promise to never "sell my data" and I don't trust that the next one which will buy your company when you decide to "exit" will do the same (I will when it's fully open source but that's not the case is it?). We shouldn't be talking about telemetry and data collected on a terminal to begin with.
Good luck with your product but HN does take privacy somewhat serious, I know I do.
VSCode collects stats and that's where all the proprietary code of your company is. As long as there is a kill switch, I feel this community is focusing too much on this.
If its 1970 and everyone smokes and leaded gas was everywhere in the US this doesn't imply that taking up smoking or leaded gas is a reasonable choice it implies rather that people are on average stupid and you should evaluate something other than whether a choice is popular.
That's why I'm advocating for a kill switch. I think its reasonable for developers of desktop application to collect some reasonable amount of anonymized information to improve the product, as long as they allow users to clearly opt-out, that's the best of both worlds.
Good luck with your product but HN does take privacy somewhat serious, I know I do.