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Depending on how populated your current location is, even a fuzzed location can reveal personal information. In a city, 10km is fine, nobody is identified. But if your home is the only one for 10km in any direction, and your fuzzing threshold is 10km, you've identified down to a single home.
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Fuzzing should go to the centre of the nearest town with some minimum population, so long as that town is in the same state/country/timezone.
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Totally disagree, as I think that would be the worst of all possible worlds - too fuzzy to be useful for many of the niche use cases where it's needed, and still a privacy violation for the majority of users who don't know their photos reveal their location.

The other suggestion about requiring something like a useLocation or includeExif attribute on the file picker, and then requiring confirmation from the user, seems like a much better solution to me.

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