Google sued by the ACCC over alleged misuse of personal data
abc.net.au
abc.net.au
You can never assume setting "I want this to happen" is all you need to do, as there is often a non-obvious "I don't want this to happen" setting that is more important. Google Ads is rife with this sort of passive misdirection.
The previous uproar on this location history thing was us getting all up in arms about how search history and location history were combined; turning off one would turn off the other. Now we're furious that they're not combined: turning off your map location history won't turn off your search history.
This is why we can't have nice things.
Before you get all excited about something "obvious" here that's clearly being overlooked, remember that if you decide to use location-sensitive search, you'll get different search results depending on where you are. Search for "voting" with location enabled, and the results will focus on what's relevant where you are, not just nonspecific voting trivia. You can't store location-sensitive search history without making it possible to derive location based on search history.
Location, history, and how location affects history are distinct concepts that can't be combined without limiting the granularity of your privacy controls, but can't be separated without limiting the clarity of your privacy controls.
It comes down to the granularity of privacy concerns and the complexity it introduces.
If you disable the direct collection of location history, should you, the user, be allowed to turn on the collection of other information that can contain location data? That would include all location-enabled service histories, of which search and app history is the most obvious example. Or should Google treat your setting as a prohibition against all possible sources of location data regardless of your other preferences?