The coarse permissions and alarming text from the OS is a problem with both Android and iOS. Often, an app wants something fairly innocous, but has to ask for more, because it's grouped with other things in the same permission ask. Then, the OS message shifts all the blame with scary messages about what the app wants to do.
The only legitimate use case for location I can think of would be to pull down cable/tv/radio channel/station listings. But this shouldn't be a requirement since the user could easily manually enter in the ones they want. My guess is that something like this might be used as the pretext for requiring location. However, if the app continues to require location to function longer term (i.e. that this wasn't just an oversight which gets corrected in a future update) then I would assume that the real use case is something that has nothing to do with helping the user.