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> "Oh sorry, I happened to walk by an opera house."

It would be unfortunate for them to phone you precisely in the small period where DND was turned on as you walked past the opera house (even a large one would be, what, under two minutes of walking?) and not try you again.

(Because if you have instant location-based DND, yes, it might turn on as you walk by an opera house but equally it would turn off when you were past the opera house. Normally, though, I'd expect location-based DND to only kick in after a certain period of time in the same location - say 10 minutes.)

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So like sitting at a coffee shop next to the theatre. Or chatting with a person on the street.
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Apple and Google know the geolocation of every WiFi network in the US at this point. They could use signal strength as an additional measure if GPS is not accurate enough (though I'm pretty sure it is).
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Sure, the coffee shop might be a problem (since I'm guessing that'd be more than 10 minutes.) You could always turn it off (and a smart system wouldn't turn it back on 10 minutes later unless you leave and come back.)
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