They absolutely do. All of the reports are thrown into a massive database, some aggregation is run over them, and the most common ones are surfaced to the development team. Whether they bubble up the priority list to actually be addressed is entirely different, of course.

We used the Windows Error Reporting functionality at a previous employer (yes, it's available to third party developers), and it was invaluable for discovering customer problems before they reported them (or not) through the normal channels.

You know that "would you like to send more information?" question? That's also triggered by the developer marking a particular error report as "needs more information, can you grab me a full dump if it occurs in future?".