1.) Indoor location (uses beacons to improve accuracy). This is transparent to app developers which used fused location provider and just results in very accurate locations.
2.) Bluetooth fast pair - https://developers.google.com/nearby/fast-pair/spec This is for feature parity with Apple "magical" AirPod pairing. You open the headphone case and immediately the popup appears asking you to connect them.
3.) Nearby APIs for device-to-device comms without internet https://developers.google.com/nearby
4.) Instant tethering for feature parity with Apple macos + iPhone tethering - https://support.google.com/pixelbook/answer/7504779?hl=en
A typical case I used to see is "let me switch off bluetooth so that my car doesn't keep connecting while I connect it to your phone" combined with "hey, how come my watch isn't connected to my phone?"
Now it works as the user expected.
This isn't how you or I might expect it to work but I suspect it satisfies most users' mental models.
This isn't intended to praise or condemn the behaviour, I'm simply responding to your question.
Now, sure, I'm sure the response of the people here is "But I turned it off because I want to have to use settings to turn it back on." And that's fine. But that's not the use case for most users, I strongly suspect. Having a phone that just works with crazy kitchen gadgets is something of real value.
I still seem to miss the "added bonus" compared with disabling the bluetooth completely.
on edit: changed you to one and your to the.
So what would be the percentage of people that buy Android phones and can identify themselves as "loving Google" AND wanting to allow Google to track everything about what they do to "improve the world"? 5%? Less?
If so, then maybe this should be opt-in for those who love the company so much, rather than opt-out?