Right, locking the functionality off to only people with a deep understanding of it would work but it’s sidestepping the problem. People without understanding would still benefit from it so it’s a shame to lock them out of it and it’s harder to justify a feature only 0.5% of your user base will use.
It's impossible for the OS to know the intent of the app requesting location with certainty. That being said, android at least has options for "Approximate" and "Precise" locations and locations in the background or only when the app is open.
Personally, I think it’s great that both options exist. Some problems really do require location info, as well as other strict controls ( like no screen-shots).