Cake and (have) eaten it too
People don't want to disclose their location to Google, but then they're expecting that Google will give them back incredibly useful things like TRAFFIC, and location-based "what is around me right now" type info.
FFS people, no entity (public nor private) has the money to deploy sensors in every inch of road to provide traffic info. They can barely get the crap to work on expressways. This is where Google had the insight to turn the phones into remote sensors. This is a participatory activity - the quality of the data goes up the more samples that are provided!!!
I do agree that it is a lot of data to feed the Goo-bot. But, YOU'RE NOT GOING TO GET A MAP SHOWING YOU AT THE CENTER UNLESS YOU CAN TELL THEM WHERE YOU ARE!!!!!