> So yes, Microsoft has publicly said if they detect a music track that may have been downloaded 'illegally', they will 'package it and all your info and send it to the feds'. It isn't spyware if you partner with the spies.
This was just part of the clickbait fearmongering that spread across various news and conspiracy sites before W10's release. From what I recall, it was to do the content clauses surrounding OneDrive/Office 365 (ie, you can't use OneDrive to host your illegally acquired content) that people somehow assumed would apply to their local documents. Microsoft made the privacy policy wording a lot clearer after that and have said numerous times that they really don't give a damn about your local files.
> Microsoft decided to go into the data business with Win10.
The advertising subsystem in W10 is actually pretty well isolated to the Windows Store and your Bing web searches, and it doesn't involve your personal information (just keyword/demographic based targeting). Your telemetry data isn't used for adverts. Microsoft Ads as a whole doesn't really make a ton of money for Microsoft so they don't invest a lot into it.