I can hide my home-based observation locations, but others usually do not. People who post observations in my front yard cause other iNat users to visit. This hasn't been a problem in that there have been only a few additional visitors, and they are friendly. Still, I don't like my yard being publicized.

People who walk by the yard might tell their friends, but ordinary word-of-mouth can't be queried online. Not yet.

EDIT: We did have what turned out to be a significant invasive species observation. It was published in my SO's account with the location obscured. I looked up the species online and realized it might be a concern, so I killed it and put it in the freezer. In the meantime, the California Agricultural Inspectors got wind of it and contacted iNat to obtain the email address associated with the account. After making contact, they sent someone to pick up my specimen, and the later, 4 inspectors (yes, really, 3 inspectors and a supervisor) were sent to look for additional specimens. None were found.

Unrelated to this incident, I posted endangered species (not on our property) in my account, and iNat automatically obscures the location. Later on, I got an ~~email~~ message via iNat from the California Department of Fish and Wildlife asking for access to the precise locations, which I gladly provided.