This is a common approach and I use many apps that use this trick. Examples being Termius, Pythonista, and any app that can log sensor data in background. I hope apple doesn't give a shit about your report.
All those apps clearly state why they want the permissions.
It’s not a misuse; it actually provides you with location data.
...why? If you don't like it, just don't install it. Not sure why you feel the need to ruin it for everyone else.
Because they, like some people I know, think that Apple should enforce their rules consistently but fail to realize that the position they’re in means they will never do so, and as such their actions are merely petty regardless of their end goal.