It's not even always necessarily about trust, but risk management as well. I've definitely coded a crash handler that exposed my database credentials in it. There's also the network aspect of it: your ISP/job/coffee shop can see the DNS request and TLS server name from the telemetry ping. That can be used to track you, or maybe you trigger some firewall alarm at work because of the ping.

We've kind of just started accepting that most apps will phone home and that there's constantly some chatter on the network from all those apps. But if you actually start looking at what all your devices and apps are doing in the background with say, a PiHole, it's pretty shocking.

I'm not that paranoid and would certainly accept some level of telemetry if asked nicely. "Hey I'm a small dev, I appreciate receiving detailed crash reports to make the app better". And as a developer, users might be willing to offer way more than what would be reasonable to do in the background. I might even agree to submit a screenshot on crash, but if and only if I've been asked before and told what it's used for, and I get the option to disagree if I'm going to be handling private information and don't want to risk my data be part of a stack trace.