The targeted advertising happens locally in your browser. It doesn't upload your data to anywhere, so I don't see how that's relevant for privacy.

Similarly, I find it hard to imagine that they'd be able to personally identify a person from what they send in telemetry (see about:telemetry). I guess, if you install an add-on called "I'm Seymour Skinner from Springfield, USA", then they could, but even then, worst-case they know when you use the browser...