Let's analyze how things appear from the user's perspective in both cases. If the user doesn't opt-in, the only difference is that the user saves a lot of money in one case. If the user opts in, one provides superior services with that data (e.g., location-based Google Now notifications) and results in more relevant location-based ads in addition to the money savings from the previous case. In both cases, the user is better off with the Moto phone.