It’s not related to the “User Feedback” setting. And it’s not fully automatic.
See this for an example of bugs generated from crash:
https://bugs.kde.org/show_bug.cgi?id=481303
You can see that:
- It is valid and useful.
- For it to be useful, you need to register an account in https://bugs.kde.org , and provide information about the crash. (the crash handler DrKonqi dialog will guide you through that.