...And just WTF is "Query Term Data"?? They go into 3 paragraphs of smokescreen to attempt to outline what is(/n't) about to happen. But they never clarify - like by example - what it is.
Here's a for instance: I do a bing search for Nipple Clamps, select a site from the Bing results, and Bing tells the site OP that I was looking for what exactly???
After reading the blog post, my interpretation of this announcement is, and I'll use your example, this:
If you do a Bing search for nipple clamps and select a site from the results, what's passed on to the site is a referrer letting the site owner that you came via Bing. However, what search terms you used to get there are not disclosed. The site owner can use Bing's query tools and discover that 17 people did search for nipple clamps before visiting their site, but nothing that personally identifies you will be disclosed.
Just my interpretation of my announcement, though. What may actually transpire may indeed be more insidious.
In the interest of full disclosure, I don't have a dog in this fight. I don't use Bing as my search engine, have never used Bing as my search engine, and probably never will use Bing as my search engine.