When an app asks for permissions, the OS should not only let you answer yes or no. Every category should have a "yes, but feed the app fake data" option.
Want my contacts for no reason? Have these generated fake ones! Wanna listen to my microphone? Here's random ambiance sounds! Location? I'm on a ...
Pretty sure it'll just feed a low accuracy location with a high radius. It'll be able to tell a general area but not accurate enough to determine what building you may be in