Yes, metadata can always be analyzed and exploited. I just hope that by open sourcing the server and the client, that I can earn some trust from people to know that I'm not doing anything like that. This is not a problem unique to this server, it's a problem of all servers in the world. And if a user is particularly concerned about exposing their IP to the server, they can always access it via a VPN or proxy server.
Zood Location can't overcome every single threat out there, but it can significantly reduce the number of threats you have to deal with.