They can also have an option is settings to ONLY allow foreground app to use location service.
I bet most people don't want random apps to know their location in the background. They only want location when they know what it's used for (e.g. Google Maps, Uber/Lyft etc). If Apple is really so pro-privacy, they can find a way to stop apps tracking location in the background.
"Allows access to Location Services only when the app or one of its features is visible on screen. If an app is set to While Using the App, you might see your status bar turn blue with a message that an app is actively using your location."
Always: an app can always access your location
While using: an app can access your location until explicitly terminated by the user or the OS due to resource constraints
Never: self-evident
> An app is considered "in use" when you're actively using it in the foreground, or when it's in use in the background, which the status bar will indicate.
from https://support.apple.com/en-us/HT203033. There is still the indication, but admittedly that is not the same.
How many people would leave it on as they drive away from home, and then struggle with their phones as they're driving?
Apple doesn't generally expose more options than it thinks a substantial number of people need. That's a UX decision, not a "Apple wants to track you forever" evil business decision.
I'll admit I wouldn't mind an option like this, but I'm fine with three levels of location service controls for apps.