If you enable that, you can save locations, so that, for example, you can "favorite" your home and your office for easy access.
If you disable activity tracking, you can't save anything.
Those two are totally unrelated, and you're still using Google Maps through your Google account, so there are 0 technical reasons they couldn't just persist your saved locations in the Google Cloud.
They just don't do it to force you to let them track your location.
It shows some respect that you don't want focus on your actual geography but I also do stuff like look at real life places to see how well it matched with my initial imagination.
I have no skin in this game - I have however been a very satisfied https://wego.here.com/ user since they were Nokia Maps back in 2012.
If you just want to look at the map you can say no.
I just opened up Google Maps on my Android 10 device with activity tracking off. They've changed the UI, now it's sneakier. I can set them and there's a faint gray text underneath that says, and I quote:
"Personal places will be used across Google products, for personalized recommendations, and for more useful ads."
Dark Pattern to the ten thousandth power.
They're literally turning my input of my home and work address as an implicit consent to enable activity tracking (!!!)
Again, there are absolutely 0 technical reasons why the two have to be related. Software of all kinds from the beginning of time has had "saved"/"favorite"/"starred" functionality, without ad tracking related to it.
The ones you mention are put in lists and you have to navigate to them, about 3 screens.
There's no technical reason why the highest UI real-estate values "Home" and "Work" couldn't be saved independently of the ad settings.
The final straw for me was when I disabled location services for Google Play Services[1] and the Gmail app, of all things, started nagging me about Google Play Services not having location data. Every time I opened it. Why the fuck does a mail client need location data so badly it has to nag you on every startup?
Oh wait, it doesn't. It's just their most popular app and so the premier spot for a nag screen.
My life's been de-Googled (apart from the odd video on YouTube) since the start of 2018 and my skin feels so much less crawly.
[1] You know, after they pushed all app developers to stop using the GPS APIs and instead get location through Google Play Services, so that you had to 'consent' to Google Play Services getting your location data if you wanted ANYTHING to be able to use location data?