Re: But they're our streets
I agree with the bulk of your post, all but the last bit. If you desire privacy in your travel then use your own transportation. Use of public transportation (bus, cab, etc) means the ride operator can track the vehicle location as part of providing the ride. Don't like it, don't want to be tracked, then don't use public transportation. The rental company is perfectly within its rights to do any form of tracking on their property, renters desires to the contrary be damned. The fact that the Department of Motor Vehicles is also tracking those vehicles is not a violation of the customers' rights, the rental company can be/probably already is/is actively tracking that vehicle already.
TL;DR: sorry you don't like that rental vehicle being tracked, but it's not a violation of your rights for the rental company nor the DMV to do it. Don't want tracking, use your own personal, owned by you, private vehicle.