The problem is Google wrapping those in such a way that sends them the data of the underlying sensors before reporting up the stack to the requesting app. They (rightly) point out this enables different sorts of location stuff, like the network parts, but it doesn't allow you to say to the Google Services I only want you using GPS, and no you can't report back without that whole layer becoming completely unusable, unless the app developer wrote it for the lower level stuff before and manually bypasses it in the case they detect Google's service is disabled.
Because I don't trust Google with this data, and will sacrifice battery life and accuracy to prevent them having it. Frankly the weather is the same for a few hundred metres around me in each direction!
They proved with the WiFi slurping on Street View cars they can't be trusted with this stuff at all.
On my devices doing the first causes apps using the Google Play Services to report that you've disabled the location service completely, while the direct GPS based apps continue just fine.
The broader point here is wanting to be able to remove Google's service software from the equation, and run only code you can actually inspect the contents of for this kind of data. To be honest those apps having direct GPS access isn't ideal either and this should all be proxied through a standardised open source app on the device.
On a Nexus 5 doing the first doesn't change anything for me; it's just less accurate (I did so, then opened up Google Maps to double check).
But you're going to have to define what you mean by "Google code", because ostensibly all of Android is "Google code". Doing what I outlined above will stop it from going through any form of sensor fusion. If you want to remove Google's service software then just create a build without Play Services on it, it's that simple. AOSP boots, on the Nexus devices at least, without it, so it's easy to do and gets you exactly what you want.
So really I guess I'm saying: What else do you want? Remove Play Services, the Google Apps, etc, using an AOSP based build and you get a Google free phone.
