Apple can also change their policy for ride-sharing apps, to force "While Using" as an option, or block Uber's update from the App Store.
Remember that it was only after apps abused the contact database, that permissions were added by Apple to give users control over apps. Apple can step up now and define a new policy that responds to these new abuses of user choice, within the ride-sharing app category.
This is one of the few benefits of Apple's walled garden review of apps. Perhaps we will eventually thank Uber for pushing the boundaries of etiquette, forcing Apple to regulate Uber and their peers.
You're right - it would be better if Apple allowed users to rollback to the N-1 version of an app. That would send a real-time signal from users to app vendors, rather than slow complaints via press and social media.
Apple should allow users to revert to any older version. There are so many apps that become worse over time, and it's only after an update that the shortcomings are found, with no way to remedy the situation. But Apple really doesn't care about such things on the user experience front. I have provided Apple feedback on this before.
The thing I like in this case is that iOS explicitly warns the user when an app requests for location services permission for use while the app is not running.
The important thing is that their analytics will pick this up, and if enough users do it, hopefully point toward re-enabling "While using."