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Seriously, though, we may want to turn this on for SXSW.
I think you can cloak your location if you do not want others to see your location, i.e.. if you are studying for an exam or on a date with someone else! Bad!
There are ways this could be useful, as I said re SXSW but other ways in which it could be damaging. What I do like about Google's offer vs loopt and others is how much control you have over privacy settings.
I just started tinkering with it last night after i got my Google over-the-air update, and I gotta say, I'm not mad at it.