I've noticed that Apple tends to give things vague-sounding names, and it's probably not by accident. I mean if my GPS had an option named "Snap to Road", I'd immediately understand its function. If it was called "Map Matching", I would be a bit perplexed.

To me, this feature seems like a horrible workaround for poor GPS accuracy, and doing it at the API level is just wrong. If an app reads coordinates from the GPS it should get the most accurate location possible (some concession could be made for pseudo-anonymising randomisation as a security/privacy option). If they feel the need to do some sort of "smoothing" on the data, then it must be an opt-in option, not obligatory.