Well, I agree with you about your concerns about ID, nút regarding location it is rather pointless to send swedish ads to a greek phone.
Location is also problematic - not on country level though. However, for that it would be sufficient to know the SIM-card provider. I don't want anyone to track my mobility. Especially if that data could be combined with other data sets, e.g. shopping behaviour or how affluent certain areas are.
Why does Angry Birds and its business partners need to know in which city I live?