On the iPhone turning off Bluetooth using the control center doesn’t even turn it of fully, precisely so that these location services (and other features) are still available.
Sidenote, it behaves differently if you've enabled airplane mode (or at least so the UI would indicate). In airplane mode, it gives no message and the wifi/bt icon goes transparent. If you're not in airplane mode, the wifi/bt icon goes light gray and it says 'disconnecting <device type> devices until tomorrow' but the radio is still on as your article mentions.
Personally I miss the old behavior where it just turns it off, but I'm often in airplane mode so I get the old behavior anyway and great battery life :P
https://www.vice.com/en_us/article/evpz7a/turn-off-wi-fi-and...