Screaming Penguin - Source Does Matter

Actually its worse than that, its not phoning "home" its phoning some other third party data mining company apparently contracted by Apple.

iTunes update spies on your listening and sends it to Apple?

This is a really really, did I say really, bad idea - at least the way it is being done.

Now its clear from the details that this "feature" only pertains to the new "mini-store" and that when that is disabled the data send/collect does not take place. And its also quite reasonable to do this to make the "mini-store" relevant and context sensitive. The problem is Apple should have disclosed this in a very noticeable manner (not just buried in the update EULA - and apparently its not even there at this point). More ideally Apple should have left the mini-store DISABLED by default and asked via a first time use dialog (which disclosed the fact that data about what songs playing would be sent to a third party) whether or not users want to use/see this thing.

That said I cannot imagine any USER actually wanting the mini-store there recommending other stuff to buy from the presently playing artist - advertising in your face without you asking for it - but of course I can imagine why Apple wants it there. (I mean if I want to buy some more stuff by the presently playing artist I can use the regular store on my own time, I already know the artist?)

Companies need to get a clue, I for one will not be updating iTunes and am pretty disappointed, yes even in Apple, for pulling this crap.