Re: Do the users of these services care?
I think the point is not that these services can be insecure - as you say, for many people the geo-location thing may be all that they are bothered about. But there will be people using them who are reading the vendors hype, thinking they are more secure than they actually are, and therefore exposing themselves to "danger"* - perhaps to "danger"* that they wouldn't accept if they knew the truth.
* Whether that danger is just a matter of remaining anonymous on a blog, through to cases where it could really involve personal physical risk.
I would hope that people where "danger" actually meant real physical danger would take more care, but as we all know, many people really have no idea about technology, and even less knowledge about how to assess the security of a VPN.