On one hand I agree with you, that's crazy that your SSH program put that limit on there for clearly tracking purposes. But I guess I sort of disagree this is Apple's problem to solve. It's yours.
Apple made the changes to inform and educate you the customer that an app that is abusing your trust.
The solution is not to force Apple to police developers but for you to stop using Terminus. Call it a free market solution if you like.
The difference with real and ideal is that Terminus could absolutely find a "legitimate" use for location and it would scoot right by Apple review anyhow. So let them be upfront they're bad people being bad.
(Before it comes... I KNOW... Apple walled garden and how they do this a lot anyhow! But, as someone who has walled garden issues with Apple, we should encourage information and education over big brother protecting us. It might not be consistent for them, but I think it's the right move here)