Google Asks for My Location During a Android Search Using Google Widget

I was sitting having dinner with my father this evening, when he told me I need to see a controversial Web site. The Web site was called End of America 36 and predicts a possible crisis in the future that stems from the 2008 financial crisis. The site paints a doom and gloom scenario of riots in the street and Martial law.

I went to pull it up on my Android 2.1 phone, which doesn't support the Flash feature of the site. So when I tried to find an alternative to look at the information my dad was sharing me using the Google widget on my phone, I get a pop up dialog asking for my permission to report my location. I thought it was weird, especially considering the content I was looking up. Why would Google want to know my GPS coordinates? I thought it was a bit strange.

I of course answered no, but I have no way to guarantee my phone isn't reporting more to Google. You see I worked for a dental software company that had this program running in the background called Eagle Eye, and it reported various conditions of the clients computers while they worked. At one time, dental supply companies were interested in getting into the software business so they could analyze business needs and market according to those needs. If small dental software companies could do this, imagine what Google could do.

I just thought it was strange. Of all the times that I did a search, this was the one time that Google wanted to data on my exact location. Any other Android users have this happen?