If I recall correctly, the issue was that the search terms were to look for data in your own computer (not on-line), and that for some stupid reason Canonical thought it'd be a good idea to send those search terms to Amazon so it could show ads in the dash along with the search results. So the actual issue was letting a third-party get info that could be used to tell what stuff do you have in your own system.
That's much closer to the true story. Which would probably not cause similar waves if an operating system made by Microsoft or Apple did the same -- there's a difference whether you make no secret out of selling your customers or whether you pretend that you're the Freedom Fighter From the Land of the Righteous, and you still do the same. Canonical, once upon a time, made a promise that Ubuntu was free and would remain free forever. They broke that promise.
It's not closer to the true story, unless you really think hearsay from the Internet rumour mill is in fact more reliable than words from the keyboard of one of the developers.
As I pointed out, when you search for something using the search bar of the Dash, the search terms are sent to Canonical, who maintains a database of search terms and results from multiple sources (just like Google does, weird). It returns those results to you. If it does not have results in its database, it can search external entities, like Amazon, to try and satisfy those results. It does not send any information to Amazon (or whomever) other than the search terms, and those terms have all identifying information stripped other than any Canonical key necessary to use the remote API. Canonical does not track individuals, except the IP information required for a round-trip HTML query. As I said, the only security hole is in the case of a man-in-the-middle attack viewing any subsequent browser session if the user selects to go online to view the results.
The feature is disabled with a single click in an interactive control panel. It has been since the official release of the software. Notification that this is happening is on the Dash home screen, so it should be no surprise that you're using the software for what it advertises it does.
I fail to see how providing increased, but optional, functionality is in any way impinging on someones freedom. There is nothing in the search that limits any known freedom. The source is free (GPLv3). Anyone is free to study, modify, or remove the search, and without compromising other functionality. Can you describe how exactly the promise that Ubuntu will remain free has been broken?
Which, just like the introduction of Unity, is a shame. Until then, Ubuntu was the best working Linux distro.
Not particularly insightful or constructive.