Telemetry is absolutely a polite word for tracking. It is fundamentally about sending information about your system, your usecase, your software and your data to a remote party (usually without notification).
Calling it anything except tracking is super bullshitty.
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Telemetry serves a different purpose than tracking, but they are both collecting data -- and it's the data collection that I object to.
Firefox does let you disable the telemetry with one exception, though. The exception is that they have a special telemetry ping to tell them when someone has disabled telemetry. While that's obnoxious and prevents me from saying "it's perfectly done", that you can disable the rest is head-and-shoulders above pretty much everyone else.
Calling it anything except tracking is super bullshitty.