Acquiring end-user telemetry by recording inputs and sending them to the app developer is not great especially if they don't ask for your permission. This is quite different than the sensational headline. update: fixed wording
This isn't the same thing. This is an actual recording of a user's entire session. While it doesn't capture a rendered image like a "screen recorder" would do, it captures every change in real-time, so it can play it back perfectly, and the end result is the same: you can watch a video of your user's session.
And I can personally confirm that people definitely stand around the water cooler and talk about the stuff they watched. It's creepy.