the "share the user's physical location with other users" has nothing to do with location awareness for filtering news etc. It is for apps that allow users for example to see each other on a map, say to find each other at some excursion or concert etc.
ah, yes right you are - misspoke there. Good catch! Sharing vs interrogating is the difference here. If you interrogate location for purposes of, say, data filtering in your app, the manifest declaration takes care of letting the Store know that your app does this.