The very fact that an app called DoNotSpy10 exists and that it turns off 37 privacy settings is one indication that it's gone way too far. Now, some of these are harmless but a lot of them should never have been turned on by default. Things like location data, handwriting data sharing, telemetry, inventory collector, webcam and microphone access, transmittal of typing data, etc. If I want a personalized experience I'll turn on the things I want. Don't flip them all on and expect me to hunt them down and turn them off.
That's because certain people don't like being targeted. It's in their interest to target you so they can monetize you better. Why should I help them out with that? I really don't care about this one because I would rather see an ad for something I'm interested in, but it should be my choice and not Microsoft's.
I could care less for Cortana. If I wanted it I'll opt into it.
How this was automatically turned on is just bizarre.
No, that app doesn't tell anything.
Disable Windows Update sharing, how does that protect my privacy? I know it is that p2p updates, but what does that have to do with my privacy? Or automatic driver updates? Or automatic Windows updates? Or...a whole lot of other features in there. They are not privacy settings.
Oh, but it does include an Adware option. Well, now, hmn, that sure is something.
Also it is specifically app access to web and microphone, how would you expect Skype to work properly otherwise? Same goes for the location. Which every website you visit already sees.
What is the exact harmful thing about the Inventory Collector? It has been in there since Vista and it has nothing to do with Microsoft getting your data. And all those points except for the Inventory Collector are handled in that setup.
Okay, it is fine that they don't want to get targeted. Personally I prefer personal ads than generic ones. And it is your choice. Quite easily. The amount of data it collects isn't any different.
I'm pretty sure that to use Cortana the first time you get a specific warning anyway and might even get an opt-out option immediate, but I'm not sure about that. It also is a pretty big feature from Windows 10, so if they would turn that off by default you have a big audience that never gets to see it. And it needs that data to function properly.
The last point I can offer little defense for, there is way too little detail about what they collect.