And here's the realistic explanation for why and why now:

"...Orin Kerr, a law professor at the University of California, Berkeley, wrote on X on Wednesday that “from a public policy standpoint, that seems like a bummer.”

“Geofencing has solved a bunch of really major cases that were otherwise totally cold,” he wrote.

“And there are lots of ways of doing the legal process (including Google's warrant policy, although that's just one way) that are a lot more privacy protective than ordinary warrants. But I can see why this might be in Google's business interest. If there isn't a lot of economic value to Google in keeping the data, and having it means you need to get embroiled in privacy debates over what you do with it, better for Google to drop it.”

It's a good thing! It never should have been allowed in the first place. But, Google didn't give a fuck until it caused them enough hassle. Doing this is just a way to avoid something more expensive later, it isn't a strong principled stand. And I'd bet small amounts that they'll still have a way to use the data anyway. It won't be some magic wand that means Google can't make money off of it.