Is Silverlight spyware?

I just visited a website and for the first time in a long while, I had to download software to allow a video to play. "Silverlight" from Microsoft! Now I usually never read the license agreement, but knowing Microsoft, I figure I'd better. I was startled to find how MS plans to "Collect" and "Use Information" about my computer!!! Is anyone else aware of this?! I'll summarize my concerns, and post the full text below:

Summary:

1) Sends your IP address, web services information, OS, browser version, and hardware ID to websites you visit.
2) This information is also sent to Microsoft, which may then allow third parties to use this information on Microsoft's behalf so long as they promise not to misuse the information.
3) Microsoft may also use this information to "store and process in the United States or any other country/region in which Microsoft or its affiliates, subsidiaries, or agents maintain facilities" and also "may disclose personal information about you if required to do so by law or in the good faith belief".

Full Text:

Collection and Use of Information About Your Computer

Internet enabled features in software will send information about your computer ("standard computer information") to the websites you visit and web services you use. This information is generally not personally identifiable. Standard computer information typically includes information such as your IP address, operating system version, browser version, your hardware ID which indicates the device manufacturer, device name, and version, application version and your regional and language settings. In this case, the application version would be the version of Microsoft Silverlight installed on your device. Microsoft Silverlight contains an update notification feature that sends standard computer information to Microsoft.

Information that is sent to Microsoft by this software will be used to provide you with Microsoft Silverlight features and services. This information may be used to improve Microsoft Silverlight and our other products and services, as well as for analysis purposes. Except as described in this statement, information you provide will not be transferred to third parties without your consent. We occasionally hire other companies to provide limited services on our behalf, such as packaging, sending, and delivering purchases and other mailings, answering customer questions about software or services, processing event registration, or performing statistical analysis of our services. We will only provide those companies the information they need to deliver the service, and they are prohibited from using that information for any other purpose.

Information that is collected by or sent to Microsoft may be stored and processed in the United States or any other country/region in which Microsoft or its affiliates, subsidiaries, or agents maintain facilities, and by using Microsoft Silverlight, you consent to any such transfer of information outside of your country. Microsoft abides by the safe harbor framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of data from the European Union. Microsoft may disclose personal information about you if required to do so by law or in the good faith belief that such action is necessary to: (a) conform to the edicts of the law or comply with legal process served on Microsoft; (b) protect and defend the rights of Microsoft (including enforcement of our agreements); or (c) act in urgent circumstances to protect the personal safety of Microsoft employees, users of Microsoft products or services, or members of the public.