While they have to be careful, there can be reasonable ones to help what they do/stop doing.
Example, “x% of telemetry enabled users enable the bookmark bar”, not particularly useful for harmful purposes, but if it were 0.00%, then they know efforts accommodating the bookmark bar would be pointless. Not many users would go out of their way to say “I don’t use some feature I’m ignoring”, and telemetry is able to convey that data, so the developer is not guessing based on his preference.
That being said, the telemetry is so opaque that it’s hard to make an informed decision as to whether the telemetry in question is risky or not. Might be good to have some sort of accumulated telemetry data that you can click to review and submit, and have that data be actually human readable and to the point for salient points.
That’s compatible with a lack of faith in profitable growth opportunity.
So far they have gone big with what I’d characterize as more evolutionary enhancements to tech. While that may find some acceptance, it’s not worth quite enough to pay off the capital investment in this generation of compute. If they overinvest and hope to eventually recoup by not upgrading, they are at severe risk of being superseded by another company that saved some expenditure to have a more modest, but more up to date compute infrastructure.
Another possibility is that they predicted a huge boom of a other companies spending on Azure hosting for AI stuff, and they are predicting those companies won’t have the growth either.