After watching Google's privacy violations closely for more than a decade, I'm pretty sure this was intentional and someone got a bonus for coming up with the idea and implementing it. Google's real motto is more user data == good.
Saving location history in a local file is not the same as sending it to Google, just like cutting your finger is not the same as getting your hand blown off.
Saving location history in a local file is not the same as sending it to Google, just like cutting your finger is not the same as getting your hand blown off.