I wouldn't trust that. Google considered that an app-level setting previously, not a choice the user made to deny location data to Google. That kind of attitude is likely to have seeped into the organization, and "We know better" / "The user expects location to work for this even with GPS off" is quite likely still the prevailing attitude.
At the very least, trust is hard to gain and easy to lose. Google has lost my trust, and assumptions of good faith have evaporated.
