I haven't heard too much about Carrier IQ in a while.  I think that they in some ways fell victim to the upswing in concern over loss of privacy that we are all experiencing as we become increasing valuable as advertising commodities.  They also took the hit, while in my mind the real culprit was the mobile provider and how they collected/used personal information.  For the most part, Carrier IQ seem to be a way to provide mobile carriers with diagnostic tools to monitor and improve call quality/reliability.  The thing that flipped most people out was the claim that Carrier IQ could function as a keylogger, something I have never seen proven and Carrier IQ has always denied.  I want the truth (and I CAN handle the truth), so it there is a way I can see exactly what is being monitored, I will indeed feel much better about it.  At the moment, it is academic for me, since I use Sprint, and they stopped using Carrier IQ when the privacy storm hit last fall.