Offhand (and I'm very far from an expert) the only situation I can think of that spoofing GPS might have legal ramifications is when using E911. In general, it's probably better to spoof a "I don't see enough satellites to get a fix, sorry" status than to spoof a "I'm definitely in Sheboygan" status.
Sure. But if the cellular radio is a separate device, that information isn't necessarily available to the OS.
If you use WiFi, that must also be a separate device, to prevent the OS from knowing what APs are available, and doing geolocation based on that.
If you're talking about tower based location, there is no way to significantly spoof your location since you can only connect to local cell towers.
To mitigate the latter, what you actually want is a phone with smarter software that will communicate over Wifi most of the time (rotating macaddr of course), perhaps with the option to turn on a cell radio in case you really need to communicate out of wifi connectivity. Hopefully the freshly built software stack inspired by new platforms will end up being conducive to this usage.
https://play.google.com/store/apps/details?id=com.blogspot.n...
But, this would still help protect against the simplest way to steal your location data, which is what a lot of services do
Tangent - Sheboygan has excellent brats