These devices are nothing new. These recordings have been done for years and are not for "tracking" people. They only record based on crash criteria and will only save data if an airbag has been deployed. Can this be abused? I'm sure it can, but if you actually read the paper it describes the detail of when how and who these recordings take place. It also states that 92% of vehicles already have such capability since the voluntary framework was set in place back in 2006. In fact, and this is copy & pasted right from the paper, they have been collecting since 1999.
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\45\ Since the beginning of EDR data collection at NHTSA (late
1999 through January 2010), over 7,600 EDRs have been imaged through
our various programs. The programs include: the National Automotive
Sampling System Crashworthiness Data System (NASS-CDS), the National
Motor Vehicle Crash Causation Study (NMVCCS), Special Crash
Investigations (SCI) and Crash Injury Research and Engineering
Network (CIREN).
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This has also most recently assisted Toyota diagnosing its acceleration problem, which lead to its massive recall. As technology gets more complex, more complex methods of diagnostics will be needed. I know older folks who grew up with carburetors probably complained about the same thing when OBD was introduced and how that collects data from sensor input.
On a side note, I would not want a tracking system to always be on which is more intrusive (like on-star or equivalent). So I guess there is a line that must be drawn, how much safety for how much privacy. Where does it become intrusive?