Exactly this. App developers are constantly saying, I need all your location data for one tiny sliver of a reason or another.
If you are a map app, location data is fine.
If you are tracking screen time, then no.
Apple's is targeting folks like my parents here. They love that apple just works, no crazy secret battery drains etc. Even the subtle prompts apple gives (the little arrow outline etc) is NOT ENOUGH for folks like my parents. It needs to follow logically from what they are doing (no buried menus / advanced features). Apple largely delivers on this. Check out an older person using an android phone with a total ton of apps (and android 3-5 years old, older folks upgrade MUCH more slowly). It's a honking mess. Seriously the battery life goes into the trash, the phone has got a billion things running on it.
Apple is making BIG money focusing pretty strictly on privacy. The idea that they are doing this to avoid competitors to screen time (which they make no extra money on) is ludicrous.