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They know everything about the installed software. At some points, they solved problems by scheduling updates to specific users. (One wanted to switch over to the chinese software, two had their toolbars reinstalled) It seems legal to me (though it's definitly big brother).
Connecting to iDS seems not to transfer information about the user to iRex, so that's good. All they know is what you entered in registration form, which (as I confirmed myself) can be filled in with bogus data.
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