I don't understand though your point about iOS: are you saying that you can request/log location history and promise/make a guarantee not to transmit it?
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and quite re: google; they don't even really need contact tracing since they have location histories of all android users (?)
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Location being enabled controls whether apps permitted to use the GPS can use it. Google's location history feature is a separate opt-in feature. Web & App activity is a separate opt-out feature with dark pattern nagging - it's not like the location history feature though.
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Web & App activity stores data on usage of searches, etc. So for example if you enable location for google.com in your browser and send it to them for searches, Web & App activity will store it as part of the history. It's not background location tracking though.
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myaccount.google.com/activitycontro
I think the issue with how they do this is how their apps like Google Maps nags to re-enable Web & App activity. They won't nag to re-enable location history but having this disabled can be a bit annoying. Less than it used to be in the past though.
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I have a Pixel 3 running the stock OS and another running AOSP so that I can use those as a reference for GrapheneOS development, and I regularly fiddle with Play Services to stay informed about it. All the invasive tracking / history is either opt-in or opt-out. The purpose...
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... of GrapheneOS is not to give people a way to opt-out of those things when they can already do that. I do think there's an advantage to not having invasive options available at all and for the OS to be agnostic about services instead of having preferred, privileged ones in it.