A couple of different view points
I have a couple of slightly different view points:
1) Apple must surely know that people might not want their location at all times to be logged. Sure, there may be a benefit (better battery life, smaller mobile data bill or whatever) for users with the phone doing this. But from a PR point of view surely it would be better to tell the users what's going on under the hood, maybe having an option to stop it, etc.
2) With Apple having servers that dish up the information on request in the first place there is an interesting consequence for the network operators. The networks are traditionally shy about the exact locations of all their cell stations. A network armed with the locations of a rival's cell stations can work out all sorts of things about their rival's network capacity, operating overhead, etc. etc. That counts as priceless commercial information allowing them to accurately undercut the rival..
So what's to stop Vodafone (for example) buying O2 iPhones and using them to get a complete map of O2's cell network and thereby deriving performance information for O2's entire cell network? Or have the network operators accepted that their competitors know everything about their networks costs and performances?
And we do need a popcorn icon.