It's not like they were using the data for something other than convenience for the user. When the users were upset, they reacted accordingly.
Facebook looks at all your data for targeted ads, and Google uses all your data to refine their algorithms. All Path did was try to use your data to help you, and when they were met with resistance they back tracked on their decision.
Mistakes like this are made all the time, and this isn't even that big of a mistake. It's not like the data was leaked. People need to seriously calm their nerves and look at what Path did right.
Stop looking for a story where there isn't one. The real story is Apple's privacy policies. Path should have been forced to ask for access to the data, but they weren't.