A few things that I can think of that they may already be considering:
1. Asking the developer to specify explicitly which screens should be recorded. From the article, it seems like it's opt-out (the developer specifies which screens should not be recorded), rather than opt-in.
2. Showing long recordings at high speed, slowing down/pausing at "interesting" portions
3. Data aggregated across multiple users: for example, a report of places in the app where most users pause the longest
4. Displays of multiple users' interactions with a single screen, overlaid on top of each other
5. Dealing with user offline scenarios where data may need to be locally stored and then uploaded when a connection is available
They must be doing some sort of frame delta on the videos to save bandwidth, I'm assuming.
Very cool idea!