>I think the point is, if you pick "don't read my location data" and then every day post a message "Today I'm at the SF Library", "Today I'm at the NYC Stock Exchange". "Today I'm at DC checking out the White House"

That's not the point at all. Your example is of someone explicitly announcing their location. The issue at hand, which may or may not be a bug, is that the metadata is being used to publish the user's location even after they've said that they don't want the app accessing the Location Services.

Technically, there's nothing wrong in that because the app isn't accessing the Location Services. However, I'm pretty sure most users would assume the app won't use any location data by turning that setting off. If you denied an app location data, would you be happy that they still managed to get location data via a means that's not necessarily obvious?