"But this is clearly Google flat-out lying about privacy. Facebook style. Everyone is opt-out. Any selection to turn off information gathering is deeply hidden, confusingly described, and changes frequently (with a default turned back on)."
While I agree with most of what you said, I have to disagree with that last bit. When this story broke (again! It's not the first time), it prompted me to check all the location settings on my phone/Google account. Everything was off with references in the results to 2015, ie the last time I checked and turned off everything I could possibly find. No settings had magically defaulted back to on.