diff --git a/resources/istio/files/istio-operator-cluster-evaluation.yaml b/resources/istio/files/istio-operator-cluster-evaluation.yaml
index e9504d9a2076..be225e57c47d 100644
--- a/resources/istio/files/istio-operator-cluster-evaluation.yaml
+++ b/resources/istio/files/istio-operator-cluster-evaluation.yaml
@@ -129,8 +129,6 @@ spec:
       enabled: true
       k8s:
         env:
-        - name: PILOT_TRACE_SAMPLING
-          value: "100"
         - name: PILOT_HTTP10
           value: "1"
         - name: POD_NAME
@@ -177,6 +175,7 @@ spec:
     defaultConfig:
       proxyMetadata: {}
       tracing:
+        sampling: 100
         zipkin:
           address: "{{ .Values.global.tracing.zipkinAddress }}"
     enablePrometheusMerge: false
@@ -295,25 +294,9 @@ spec:
       keepaliveMaxServerConnectionAge: 30m
       nodeSelector: {}
       replicaCount: 1
-      traceSampling: 1
     sidecarInjectorWebhook:
       enableNamespacesByDefault: true
       objectSelector:
         autoInject: true
         enabled: false
       rewriteAppHTTPProbe: true
-    telemetry:
-      enabled: true
-      v2:
-        enabled: true
-        metadataExchange:
-          wasmEnabled: false
-        prometheus:
-          enabled: true
-          wasmEnabled: false
-        stackdriver:
-          configOverride: {}
-          enabled: false
-          logging: false
-          monitoring: false
-          topology: false
diff --git a/resources/istio/files/istio-operator-cluster-production.yaml b/resources/istio/files/istio-operator-cluster-production.yaml
index 6fd5deea95f8..e39efc7f2429 100644
--- a/resources/istio/files/istio-operator-cluster-production.yaml
+++ b/resources/istio/files/istio-operator-cluster-production.yaml
@@ -129,8 +129,6 @@ spec:
       enabled: true
       k8s:
         env:
-        - name: PILOT_TRACE_SAMPLING
-          value: "100"
         - name: PILOT_HTTP10
           value: "1"
         - name: POD_NAME
@@ -177,6 +175,7 @@ spec:
     defaultConfig:
       proxyMetadata: {}
       tracing:
+        # sampling: 1 # use the istio default (which is 1) to support override by pilot env variable at runtime
         zipkin:
           address: "{{ .Values.global.tracing.zipkinAddress }}"
     enablePrometheusMerge: false
@@ -297,25 +296,9 @@ spec:
       keepaliveMaxServerConnectionAge: 30m
       nodeSelector: {}
       replicaCount: 1
-      traceSampling: 1
     sidecarInjectorWebhook:
       enableNamespacesByDefault: true
       objectSelector:
         autoInject: true
         enabled: false
       rewriteAppHTTPProbe: true
-    telemetry:
-      enabled: true
-      v2:
-        enabled: true
-        metadataExchange:
-          wasmEnabled: false
-        prometheus:
-          enabled: true
-          wasmEnabled: false
-        stackdriver:
-          configOverride: {}
-          enabled: false
-          logging: false
-          monitoring: false
-          topology: false
diff --git a/resources/istio/files/istio-operator-cluster.yaml b/resources/istio/files/istio-operator-cluster.yaml
index 7b0bde849d41..930b6a1abcb3 100644
--- a/resources/istio/files/istio-operator-cluster.yaml
+++ b/resources/istio/files/istio-operator-cluster.yaml
@@ -127,8 +127,6 @@ spec:
       enabled: true
       k8s:
         env:
-        - name: PILOT_TRACE_SAMPLING
-          value: "100"
         - name: PILOT_HTTP10
           value: "1"
         - name: POD_NAME
@@ -174,6 +172,7 @@ spec:
     defaultConfig:
       proxyMetadata: {}
       tracing:
+        # sampling: 1 # use the istio default (which is 1) to support override by pilot env variable at runtime
         zipkin:
           address: "{{ .Values.global.tracing.zipkinAddress }}"
     enablePrometheusMerge: false
@@ -294,25 +293,9 @@ spec:
       keepaliveMaxServerConnectionAge: 30m
       nodeSelector: {}
       replicaCount: 1
-      traceSampling: 1
     sidecarInjectorWebhook:
       enableNamespacesByDefault: true
       objectSelector:
         autoInject: true
         enabled: false
       rewriteAppHTTPProbe: true
-    telemetry:
-      enabled: true
-      v2:
-        enabled: true
-        metadataExchange:
-          wasmEnabled: false
-        prometheus:
-          enabled: true
-          wasmEnabled: false
-        stackdriver:
-          configOverride: {}
-          enabled: false
-          logging: false
-          monitoring: false
-          topology: false
diff --git a/resources/istio/files/istio-operator-minikube-evaluation.yaml b/resources/istio/files/istio-operator-minikube-evaluation.yaml
index 53eea64a6c5a..4d75c9e7db9d 100644
--- a/resources/istio/files/istio-operator-minikube-evaluation.yaml
+++ b/resources/istio/files/istio-operator-minikube-evaluation.yaml
@@ -135,8 +135,6 @@ spec:
       enabled: true
       k8s:
         env:
-          - name: PILOT_TRACE_SAMPLING
-            value: "100"
           - name: PILOT_HTTP10
             value: "1"
           - name: POD_NAME
@@ -188,9 +186,11 @@ spec:
     defaultConfig:
       proxyMetadata: {}
       tracing:
+        sampling: 100
         zipkin:
           address: "{{ .Values.global.tracing.zipkinAddress }}"
     enablePrometheusMerge: false
+    enableTracing: {{ .Values.global.tracing.enabled }}
   values:
     base:
       enableCRDTemplates: false
@@ -306,25 +306,9 @@ spec:
       keepaliveMaxServerConnectionAge: 30m
       nodeSelector: {}
       replicaCount: 1
-      traceSampling: 1
     sidecarInjectorWebhook:
       enableNamespacesByDefault: true
       objectSelector:
         autoInject: true
         enabled: false
       rewriteAppHTTPProbe: true
-    telemetry:
-      enabled: true
-      v2:
-        enabled: true
-        metadataExchange:
-          wasmEnabled: false
-        prometheus:
-          enabled: true
-          wasmEnabled: false
-        stackdriver:
-          configOverride: {}
-          enabled: false
-          logging: false
-          monitoring: false
-          topology: false
diff --git a/resources/istio/files/istio-operator-minikube.yaml b/resources/istio/files/istio-operator-minikube.yaml
index 951c0b548e74..23993db9e98e 100644
--- a/resources/istio/files/istio-operator-minikube.yaml
+++ b/resources/istio/files/istio-operator-minikube.yaml
@@ -135,8 +135,6 @@ spec:
       enabled: true
       k8s:
         env:
-        - name: PILOT_TRACE_SAMPLING
-          value: "100"
         - name: PILOT_HTTP10
           value: "1"
         - name: POD_NAME
@@ -187,9 +185,11 @@ spec:
     defaultConfig:
       proxyMetadata: {}
       tracing:
+        # sampling: 1 # use the istio default (which is 1) to support override by pilot env variable at runtime
         zipkin:
           address: "{{ .Values.global.tracing.zipkinAddress }}"
     enablePrometheusMerge: false
+    enableTracing: {{ .Values.global.tracing.enabled }}
   values:
     base:
       enableCRDTemplates: false
@@ -304,25 +304,9 @@ spec:
       keepaliveMaxServerConnectionAge: 30m
       nodeSelector: {}
       replicaCount: 1
-      traceSampling: 1
     sidecarInjectorWebhook:
       enableNamespacesByDefault: true
       objectSelector:
         autoInject: true
         enabled: false
       rewriteAppHTTPProbe: true
-    telemetry:
-      enabled: true
-      v2:
-        enabled: true
-        metadataExchange:
-          wasmEnabled: false
-        prometheus:
-          enabled: true
-          wasmEnabled: false
-        stackdriver:
-          configOverride: {}
-          enabled: false
-          logging: false
-          monitoring: false
-          topology: false