Why? You get the warning notification that a login has been made within a few moments, just how many logins do you carry out where you could possibly require the location information to discriminate between your multiple legitimate ones??? If you didn't login but the location showed your house would you trust it was "you"?
As I said I recently switched from two-step verification to two-factor authentication, and that meant that I hade to login again from all my devices, and I have some old iPhones and Mac running as well, and when the location and the timing was off in Apples message then I hit deny and hade to redo it later. So unusually many logins right now, but enough to be bother by the confusion.
If they just showed me my home town
instead of a different town halfway across the country, the I would assume it was from my IP and it was my doing.
Now I've got an alert from a completely different location that
clearly isn't me, so now I have stop and think: is this
really my login with a mistaken location? Or is it a hacker, a man-in-the-middle-attack, a phising scheme? Why is Apple showing me this other different location? Why can't they pinpoint me like everyone else?
I don't understand your arguments, why are you defending a
clearly confusing behaviour from Apple? Why is it so hard to understand that pushing a map in my face with
some other location is less optimal then
actually showing my location? Remember that any other location service gets my location correct, and therefor I'm extra suspicious if a big company like Apple couldn't, so the first thought is "this must be someone else".
Again the actual benefit comes from the timing, if I get a notification right now I'd know it wasn't genuine irrespective of any location information because I haven't initiated a login for a couple of days. The location information, accurate or not (and tbh to a regional level is probably sufficient), is "interesting" to "irrelevant" information (or you should teat it as such), when deciding whether an access attempt is genuinely you or not.
Again, it does
not always happen instantly. For example, I entered my iCloud credentials on an old iPhone and went on doing other stuff and then, perhaps 5 minutes later, I get the message with the wrong location and no IP address and no timestamp. That is not good UX.
Also, it's not only about me, I'm thinking of how other users, non-power users, is experiencing this. They will probably be scared unnecessarily.
(And again, Apple have all the information I need, if the just did like Facebook and Google and others do – giving me the IP-address as well – it wouldn't be the same issue, then I could quickly dismiss the incorrect location data.)