Joke aside, I believe most people don't understand what this iOS popup wants from them: for most average users, it's another annoying popup that their device shows them and they don't really know what it means or what option they should choose (like the location ones, networking ones, bluetooth, ...). It happens a lot with the older generation, but even as a tech person I sometimes just don't know what is the right choice.
So it's so easy for someone to choose the "wrong" option, when it's presented with too few information or at a wrong time, like refusing the location service and then Waze doesn't work, because they just don't know they have to allow it.
I believe these choices should be handled by Apple through the store and not by the users: if the app is doing something shady with ads or location, the app should be disabled before it reaches the user's device; the user shouldn't have to "know" those things, the user has no way to check or validate that the usage is legitimate.