Maybe people could just live with having to search: "<query> near <nearby major town>" if they want to get geographically relevant results. It doesn't seem that terrible to me.
Maybe you should have to opt-in to handing over all your data, and users who value "usability" over privacy can make an informed choice for themselves.
and then you live in London, ON - Canada, and search for Best places to eat in London...
Or you live in the US city of Vancouver instead of Canada and try the same thing...