I think it's ludicrous. iOS is quite clear in its explanation of Location Services, and their explanation is not at all "technical" or intimidating to non-technical users. Also, the permission to access your photos is completely separate from the Location Services permission. Maybe you the author would have a point if iOS automatically gave apps access to your camera roll, but that's not the case.
I don't doubt that some users will be surprised by the photo's geotag, but I suspect it would be an extremely low number of users (the fact that this if just now being blogged about seems to corroborate this, unless Path have just recently added this behavior).