It's accurate in that it's the "remote collection and transmission of data", but it's a term traditionally associated with aerospace. Software has been doing this for a long time, but only recently have people started calling it "telemetry".
For my part: it didn't used to be called that, and feels like software folks trying to feel fancier than they are (and/or whitewashing bad practices by pushing new-to-the-industry terminology that makes spying sound scientific)
Though at this point it's been widespread long enough that I suppose it's just a normal term that's "always been used", to some developers, not a new, alien-feeling part of the software lexicon.
I think the word telemetry is fine. It's concise, accurate, and not emotionally loaded in either direction.
Microsoft OTOH calls their data collection the "Customer Experience Improvement Program" - now THAT is whitewashing.
It's only been a decade or so now that you could rely on most computers always having an internet connection. That's probably why the term feels new - it only started being used when the practice became technically feasible. Maybe others remember things differently. /shrug
