Doing it on-device has other advantages besides privacy (e.g. it works without an Internet connection).

> Apple's directions aren't as good as they could be because Maps randomly segments trips and masks its users identity.

Could you explain that? I didn't really understand what you mean by segmenting the trips and why that should masks the user identity.

> Apple's App Store revenues are lower because they limit how apps can identify users.

You're comparing them to Google here. One could ask why apps can identify their users at all?