Why is it called "Spy-Ware"?

While this may be a great concept, the downside is that the advertising companies also install additional tracking software on your system, which is continuously "calling home", using your Internet connection and reports statistical data to the "mother ship". While according to the privacy policies of the companies, there will be no sensitive or identifying data collected from your system and you shall remain anonymous, it still remains the fact, that you have a "live" server sitting on your PC that is sending information about you and your surfing habits to a remote location.....