Neither the government nor an ad agency needs to know where I am, no matter how "rough" the data is. It's none of their business.
Well, in the case of a company trying to market to you, it literally _is_ their business. It makes them money.
The problem is that we have markets where we: - Incentivize organizations to pursue profits at the expense of everything else, which includes social good and civic rights - Rarely hold bad actors accountable (and almost never in a timely manner)
Which means, given enough time, we're always going to trend to whatever makes the most money. Targeted advertising makes money, and will continue to do so unless or until we collectively decide to make it a greater risk to profits than it is today.
At this point, your device is not giving anyone your location without explicit permission. So it really just comes down to your IP Address, which services do need.
The government does need to know where the people building their lives on breaking the law are. Don't think CBP wants to know where you are.
But dude... just think of all the optimal personalized mattres sales they can do with that data. I mean, people that use the bathroom at 3:57pm for seven minutes are 0.00138% more likely to buy a new mattress within the next six months. They need that data. Think of all the unsold mattresses.