This is really tough because the only purpose of Grindr is to give it your location to see who is around you. There also needs to be much stronger requirements for end user transparency about where their data is going.
It would still serve its purpose even if you spoofed your location to be somewhere nearby or elsewhere. Nobody needs to be able to figure out exactly where specific users are/live/work via the platform.
Removing that ability removes one of the key functionality of these apps and why they are popular.
Seeing that someone is 100 ft away is a common start of a conversation. Maybe they live in the same apartment, at a local coffee shop, work in the same building. Which leads to... well...
Plenty of people already spoof their locations on the app and the app itself offers location changing functionality, I'd hardly say that is removing functionality or defeating the purpose of the app.