ubuntu logs everything you type?!

[Valtam]

That site refers to the use of Unity. We don't use Unity, so your concern does not apply to Linux Lite.

The truth is that ANY software, closed or open can contain malicious features. The main difference is that with open source and free software, the code can be audited. If you use closed source software ie. Windows and you have these kind of concerns, you should stop using it yesterday. Most people aren't programmers so they can't audit code. You would have to rely on someone else to do it for you. It all boils down to trust and openness, proprietary software asks you to invest all of your trust into that software - blindly and implicitly, free software allows you the chance to inspect the code before you even run it on your computer.

Who's going to audit an entire operating system? Even if some organisation did undertake that task, it's an infinite task in that by the time they had finished, there would new versions to also audit. If you don't trust any form of software, you should not be using it and should take up another hobby or interest.