1) It's poorly implemented. Unlike other permissions, there's no way to explicitly trigger the prompt. It just pops up at Apple's discretion. There's no way to give it a "soft landing" for cases where it's necessary for core app features. And there's no way to check if the permission has been granted or not.
2) More importantly: Apple's own apps don't trigger this warning, which makes the playing field unfair. AirPlay etc. work seamlessly, whereas any competitor's tech doesn't. And as a developer, since you can't tell if this permission has been granted or not, you're left with a poor user experience.
I'm particularly fed up of (2). If Apple is going to introduce restrictions, they need to apply to their own apps as well. AirPlay and AirDrop need to each ask for Bluetooth and local network access. The Photos app needs to trigger the "Select photos, Allow All, Deny" prompt on launch. The Camera app shouldn't be able to write to the photo library without triggering the same prompt too.
That gives them an incentive to design the user experience around these restrictions well, and maybe be more creative with how to solve for this too rather than confusing dialogs.
Currently they have a disincentive to design this stuff well. Any iOS developer that's had to work with these APIs knows that they are designed absolutely awfully with arbitrary and unexpected limitations.