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Joey Hess has taken a closer look at the code inside webOS that reports information back to Palm and found some details on what the Pre is sending back to headquarters. Specifically, it appears that the Pre uploads (at least) the following information to Palm on a daily basis:
Location
Which apps you've used and for how long
App crash logs
Installed apps
It's obviously the "location" part here that's troubling. As Hess points out, Palm's Terms and Conditions and Privacy Policy are sufficiently broad to give them permission to collect this information. In fact, our own Derek Kessler wrote up a post some time ago (which we were holding because, well, we're not lawyers) which explained that when you agree to Palm's terms, you grant them the right to collect this information.