The problem here is that the choices are all glued together. If you disable saving location history to third party servers and all your apps still work by just using it locally, that's one thing, and certainly when that option is available then people should choose it.

But if disabling third party storage breaks the apps, you can nominally stop using the apps, but that's often not a viable option and even if it isn't completely infeasible the user will be under significant pressure to indicate consent even if they would prefer not to. That's not where we want to be.