Windows Update NOT Snooping
It is said in the tecChannel article is that the capability EXISTS for Microsoft to snoop on your software with Windows Update, but that they're not doing it. Of course, it's pretty obvious that the capability would exist as anything's possible with an ActiveX control. But that's a far cry from what's being reported, and what 10 minutes of actual reading rather than cut and pasting would have shown people.
From The Chatty
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and hence we have the conflict of trusting Microsoft while also not trusting Microsoft..