It can't be simpler but the questions are not simple?

So don't ask them. Default to a non privacy invading mode. Ask the questions later of people who wants the features.

I don't buy "this is the pinnacle of ease of use" and we can't get further.

I lost count of the people who complained about their iDevices features not working properly because they intentionally (so they thought) turned them off. Having eg location services turned off by default and not ask about it will just lead to tons of people complaining that directions don’t work properly. And asking them the moment they open the builtin maps application will make them close the app because ‘it does not work’ and ‘there’s an error’ and ‘iPhones are so complicated’.

I think you will find much of this is because of the current balance struck between privacy invasion and usability. If brilliant minds were put to it, I am sure location services could be mostly client side and not server side. And so on. Just writing it feels heretic and crack-pot, except it wouldn't have to be.

Location services are client side. You turn it off if you don't trust client side apps to have access to your location.