Perhaps not that specific option which controls some smaller facet of sharing and recommendations, however but it's definitely the case when you turn off syncing "Web & App Activity" with the Google panopticon.

Where the history would usually be, there's just this nagging message:

> To see your home and work, past searches, and other suggestions tailed for you, turn on Web & App Activity.

...Which, as mentioned already, misleadingly implies that local-history features are difficult or nonstandard.

I'd say it's more that it quite correctly implies that if you resist sharing your personal life with Google, they'll punish you.

It likely was formerly true. Maps was very limited 2 years ago when I turned off Location History; it's gotten a lot better since.