You can't have privacy without security, but security by itself does not equal privacy.
The best security in the world doesn't mean that you have privacy if everything you do online is tracked. And no company arguably tracks you more than Google. The volume of tracking data they collect about users is mind-bogglingly gargantuan in scale.
It's baffling how Google escapes scrutiny on their data collection practices, particularly from the tech community who seem happy to give Google a free pass on matters of privacy and online tracking.
Google has much better security than the phone companies anyway, so letting the phone companies know where you are is bad enough.
I had the idea to "red team" myself and find out if there's a way of finding out my location history from shady online data broker and then take countermeasures.
There is no way to ever completely trust a cellular device.
Hopping out of "airplane mode" can be made arb fast.
So, short answer, customer demand. I bet eventually they will get too creepy with the data and demand will happen.
Smartphone or not, carrying any phone means providing this information to your carrier at all times.
I don't like the idea of sending this information to anybody, but to be honest, Google is the entity that I'm the last concerned with at the moment. Unlike literally every cell carrier on the market, hey have an excellent track record from a data security perspective, and their entire competitive advantage relies on them not providing that raw data to any third party.