So the innovation is that the data is now broadcast to Apple (and therefore the NSA)?
Personally I would much prefer this as an offline thing. Something constantly monitoring my location and broadcasting online - no thanks!
Something I can carry on my person that periodically broadcasts a time-sensitive signal to nearby devices (which then have functionality based on this) - which doesn't use GPS, doesn't have online capabilities - would be sweet! I wouldn't mind if that something was built into my watch or even my phone (in so far as I could trust it not to store data and send it)
Looking at posts above mine - I am inclined to think something like what I want, already exists. Now I just need the money for it.