Re: What's the problem really?
If you don't care, that is fine for you. Feel free to enable all the snooping options. But some of us do care about our privacy.
Partly it is just because it is my data, and none of anyone else's business. If they want to buy it from me with an offer of some benefit in exchange then fine: I will consider the offer and take or leave it as I choose. But they have to be clear and open about it, and I have to have a free choice.
Also it is a matter of principle. It is unlikely anyone really cares about my data. But there are plenty of people for whom this control is vital. Even just for location the list is long, such as journalists, political activists, abuse victims, whistle-blowers, celebrities, etc. If you include control over contacts, audio (microphone access), communications (access to SMS and email) and camera you can extend the list to all doctors, lawyers, politicians, CEOs and anyone with knowledge of a secret that might be worth money to someone.
By making sure that everyone has, and routinely uses, full control we allow those people to have the control they need (and without drawing attention to themselves by using it).