crypto faucets that kinda faucet concept has existed for a while. some of them do them for marketing/product awareness opps other ones like that do it for your information (geolocation data is worth $$). they were a few btc faucets around 13-14 or so.
its a lot more relevant to testnets where that stuff is significant in order to test tx types and volumes for a mktplace
no they can tell if you're walking around or driving around or whatever and reward you based on whatever returns they get on that type of data probably
tons of big companies like Uber Doodrash etc that could use that information to predict location because that GPS tracking stuff is not that amazing or figure out which paths are most optimal/congested