> Today I posted a picture that I'd taken yesterday (after cropping out location-identifying features).
Well this is clearly part of the real problem. Anyone who saw the photo could have seen where they were taken from the EXIF data because you didn't clear it. Most users don't know that the data is there and don't know that they need to, it's a weird thing privacy wise and a lot of people get put in weird situations because of it. (McAfee comes to mind.)
You're still telling the Internet where you were even if Path doesn't go ahead and tag it and make it visible to you. If anything, what they've done is actually saved you some embarrassment and made you realize that data was there so you could take action about it (like taking down the photos and posted ones with cleared EXIF data) if you want.
But 90% of the time for 90% of users, this EXIF data is pretty useful. It's kind of a pickle and really to solve it properly what you're asking iOS to do is give files with completely different metadata out based on the user's privacy preferences, which aren't always spelled out entirely clearly, especially the way iOS works with kind of an all or nothing location privacy selection. You can't really tell the OS "Hey, for the next five days, let's not be explicit about where I am." or "Hey, keep my privacy for me when I'm in a certain geofence".
This is stuff they could add, but doing it right isn't trivial.