Yeah, I believe you're right. It might be a matter of framing. If you show me the value of collecting telemetry data, what good decisions you've made because of it, how you got rid of that annoying thing plenty of users complained about because you saw that it affected a large group of users and wasn't just a loud dozen etc, you might sell it to me.

Most data collection for "analytics" is just about you as the product owner optimizing the product for whatever goal you want to, engagement, sales, ad clicks, retention or what have you. I as a user that provides the data gain nothing from that and, being the target of those manipulations, I might actually lose (by spending more time on your site than I wanted to etc), but if you can show that I give data = I get better product, I don't think I'd be that hard to convince.

I don't know if VS Code does something in that regard (if they do, they don't communicate it effectively enough to reach me), but I do like their approach in general - I once read through an issue where they discussed changing some component for a more advanced one and pretty much everybody agreed that the newer one was better, but they still had a few words on "how can we measure that? how can we make sure that it's not just us devs that work on this thing all day and it won't be the same for the people using it in their daily life on all kinds of experience levels". I liked that a lot (so much so that I still remember it months after reading), but apparently not quite enough to enable telemetry data ;)