Can someone explain this? It doesn't seem to make sense that with wifi disabled this would be possible (and the code they link to specifically has a fall through if wifi is disabled). Maybe something just got jumbled up in their explanation.
"the Android OS by default performs WiFi scans in the intervals of tens of seconds, even when the WiFi is turned off; the setting to disable background scanning when WiFi is off is buried in the advanced settings."
It looks like you can stop this from happening when the WiFi is off it just requires an extra step. I don't have an Android device so I can't really verify this.
I'm not sure if this was ever a "default", but it is definitely part of the setup prompts now.
I advise turning it off unless you need it to be on, not only for privacy reasons but for battery life. I noticed an increase in battery life by turning that feature off.
With this turned off and GPS turned on (ie, not using Wifi to determine locations) I get a terrible reduction in battery life because all locations are done finely with the GPS chip. With all location services disabled I get much better battery life.