It's perfectly reasonable to have the expectation that the cell phone network can provide location to emergency services but not the the telecom provider's marketing team or whoever they sell the data to.
In fact the apple feature the article talks about says [1]
> The limit precise location setting doesn't impact the precision of the location data that is shared with emergency responders during an emergency call.
So it actually now implements what it should have been all along. (except that it should be the default)