Waterfox is no longer owned by System1, and there’s no evidence System1 ever added analytics to Waterfox.
“In July 2023, Alex Kontos announced that Waterfox had been turned into an independent project again.”
That’s very recent, I didn’t know.
I wouldn’t use a browser bought by a shady company when there are good alternatives. I wouldn’t want to support that company by using it.
That’s fair, but I get the feeling Waterfox wasn’t very profitable for them to begin with.
I personally use it because it fills the very specific niche of re-enabling support for the legacy add-on format by default. You can do this in Firefox and other derivatives, but it’s kind of a pain and it’s easily undone by updates. I don’t know of any alternatives that do the same thing.