For good reason! There's many online services where you can put in a wifi MAC and pretty much know within 100M where someone is.

Yeah, the message could be made clearer about what's actually being allowed, but in the end I'm glad it's there. Maybe a generic system for when you request a permission being able to provide an explanation string or something. I know some apps made a pop-up before the prompt but I found that rather verbose especially when it was incredibly obvious why they needed the permission.