If you say yes, Google is crowdsourcing your data. Google knows where you are and how fast you are moving.
I'd normally say "Opt in by default. Take action to opt out" is bad. But for more accurate live traffic information on freeways as well as major roads? Hmm... Given that I drive in LA traffic and I will continue to do so for more years to come, I think I'm fine with sharing my data with Google for this matter.
I do 50-mile round trip commute to work everyday and I do drive off freeways quite a bit, so I love this major road traffic data on my iPhone 3G. I hate it when I get stuck in a local street and have no idea why traffic is jammed. Sometimes it's an accident and sometimes there are constructions going on. If you run into this in the morning and you only have 5 minutes left to get in in time? You'll be frustrated.
Now, I can see traffic data on most, if not all, of local roads that I drive on. This is great.
I have one request for you though, Google.
Can we make the road names visible even when traffic is turned on? You could make it semi-transparent, can't you?
I have to turn off traffic info to see road names. I find this kind of annoying when I'm driving in unfamiliar areas.