The section you have listed is about "you have set a geolocation already, control access to who can see it".
Frankly there is no way that Google's RCS app streams your location to any endpoint without an explicit opt in in the app. I'll eat my hat if I'm wrong.
User selects to share location with 1 person in the world, and maybe even forgets about it because the feature is such low value [for the user] anyways. Google [and Verizon, and whomever else is in the middle] gets to snoop on user location forever at whatever precision they want, because "it's in the spec". Looks like a dark pattern for tricking everybody to share the location with Google, enabling corporate 24/7 mass surveillance.
Shameful.
Google has many choices: don't implement clear-text geolocation presence, don't implement RCS, speak up in the standards committee, communicate the implication to Google users, etc. Google chose to silently use a dark pattern to enable 24/7 location snooping.
You are literally looking at what the spec could allow a compliant client to do and then assuming that Google will make an app that uses dark patterns to trick users into doing them when they don't want to (and when it also provides no real value to Google compared to the data collection they can already do)
"Share with your friends" means "Share with your friends, and we'll snoop/aggregate everything that's ever shared by anyone using our platform in perpetuity and use it to subvert your will, haha 'private communication' is so XX century".
RCS is yet another excuse to implement this dark pattern, with explicit provisions to include unencrypted 24/7 geolocation information in it. Google just rehauled their Android messaging strategy around RCS. They deserve to be called out on it.
PS. You claimed "The feature being discussed here is literally the ability to manually press a button to send your location to your contact." Until you take that back as factually false [it's continuously sending, not gated by a button press per send], we're done here.
Frankly there is no way that Google's RCS app streams your location to any endpoint without an explicit opt in in the app. I'll eat my hat if I'm wrong.