Hi, I'm k0nane, and I removed Carrier IQ on the Epic 4G - the first device from which CIQ was ever removed. Carrier IQ is /NOT/ a part of Android, Sense, or anything HTC - it's a third-party spyware package installed on Sprint Android devices, at the behest of Sprint.
CIQ's exact function is controversial. I published my findings here;
http://forum.xda-developers.co...
Without being a part of Sprint or Carrier IQ, I can't ascertain its exact functions. However, having looked at the decompiled code, I can tell you that it hooks into a heck of a lot more than Sprint would ever want to admit. Its 'metrics' dig into every keypress, every touch of the screen, every HTTP data request, every application used, every SMS sent or received... the list goes on. A fellow developer once called it a "mutant many-legged spider".
I'm not familiar with the "new" functions referenced in this piece, but the ability to check users' locations and applications used has been around at least since the implementation in EB13 on the Epic 4G.
/x-posted to BGR/