i wouldn't be worried about my flashlight app tracking me, i'd be worried about the large players who probably GET the use of this API, google facebook etc etc.
Here's the request form that you fill up for it: https://developer.apple.com/contact/request/hotspot-helper/
And? How is this any better? e.g. if I'm a dissident/etc. in China I would be much concerned about government affiliated large corporations being able to track my location than some random private developer (not that this specific API really matters that much if you're using those apps anyway).
> I find it dishonest and alarmist.
I find it a magnitude or two less dishonest than Apple (a company supposedly focused on user private) not informing their users that this is happening and directly requesting their consent.
If you don't want the government track you, you will have to do much better than using mainstream consumer devices. Apple is not your spycraft supplier.
Carriers constantly perform triangulation and keep records of phones' coordinates, which of course can be subpoenaed, and may be available more freely to government agencies, depending on how much abusive surveillance your local government does. Carriers have also sold this information to data brokers in the past.
Why would a flashlight app even need your location?