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Seems to have gone away now & I reloaded the google app & turned off the location reporting.
 
Seems as though I'm one of the only people that hasn't noticed any real effect on battery life, despite having the GPS icon displayed all day. I was a little nervous at first but like I said I haven't noticed a difference.

I'm using a 4s, but not sure if that would make any difference.

I may be wrong, but from my understanding I would think that disabling location reporting would cripple parts of the service? Eg. What time I leave for work etc.

You're correct. Disabling location reporting limits Google Now's abilities, but not always to a negative effect. It's the trade off for a bit more battery life. If you're someone who doesn't want traffic updates, ETAs to a frequented destination or made aware of a store/location that it thinks may interest you then turning it off probably isn't going to change how you enjoy the app.

People just have to decide if a little extra battery life and privacy outweigh a few more features and possibly less privacy.
 
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