[Que]

You are correct, it is different.

IP Geo-Location is a hack for when GPS Location and uniqueID aren't available, so the prudent choice to gain accurate analytic info would be to use the most accurate. Especially if you are a developer / publisher trying to tailor your functionality to your particular audience.

Android does inform you, in advance of installation of exactly what information the application would like access to so you can be absolutely aware of what information you are freely giving up when installing an application. Your only means to block access however after installation is if you have root access and modify host entries.