The telemetry is used to analyzed the most used / unused features and to improve the product. For example, it's useful to understand that some specific technology gains more popularity among users and contribute more into its support.
I have no doubt that this is the primary use. It was the only way to use that data until now. Now that there is a free offering, there is a new potential use that neatly explains why it is required in the free offering and optional otherwise.
