Re: What's the problem really?
I think this maybe illustrates a generation gap. Privacy should be the default but increasingly it seems that people don't understand this.
Sharing/snooping/tracking/whatever you want to call it can be abused, no matter how benign the original intention, or whatever conveniences it provides in some cases.
I will turn location on if I need it, then turn it off again. I will not download apps that want access to the camera if it's not obvious why. etc.etc.
And no, I don't turn on GPS/location when using Google Maps unless I need GPS, which I rarely do.
It's not completely paranoid, it's just best practice to err on the side of caution.