I think all they're saying is that the location X appears precise, but that it's not accurate. Just because the pin appears at location X doesn't mean that the user was actually at location X, simply that the database ended up recording their location as a (inaccurate) point that happened to be X, as opposed to recording an "area of uncertainty" or similar construct.
That may be true, but the meat of the contention is that Whisper are tracking their users' locations, even when those users asked Whisper not to. The accuracy of the tracking is a bit of a red herring: Whisper is tracking their users' location, without those users' consent.
