I don't think this is an invasion of privacy at all. Heap hooks into single apps, it's not like it hooks into the OS to monitor user interaction with everything a user does in every app. I would sympathise with your reaction if this was the case.

I think it's perfectly good enough for a vendor to declare what data they are collecting in their ToS e.g. "we collect information on how you use the app" and why, e.g. "to consider for future versions so that we release the best possible, most useful software for our users". It's absurd to mandate that this be communicated in "large block letters" as this makes it into a bigger deal than it is.

Let's take off the tin foil hats and be pragmatic. I fully expect analytics to collected on everything I use and I understand the motivation behind it too, i.e. it's to improve whatever it is I am using to make it more useful, and therefore valuable to me.