Anyone know what possible valid reason there could be for this? It's not like Google doesn't have access to this through play services anyway. Worse, if you don't enable it, the app refuses to run. Is there a way to bypass this or perhaps a less-intrusive app with similar functionality?
Accessing local network info can be used to determine location, by its very nature. It doesn't mean is will be, just that it is possible in some situations. As such, it's considered a location setting for privacy controls. Location services is not just GPS.
Ok, here goes. As Bluetooth has a far smaller range than WiFi, it is better suited for tracking the whereabouts of a phone by putting up sensors and listening for Bluetooth broadcasts. it will allow you a far more precise location than you can get with WiFi access points. This could be mis-used by apps from grocers/malls etc to map out the traffic in their stores etc. Therefore, Google has decided that any application that wants to access Bluetooth has to request the location permission, as these non-resetable Bluetooth IDs can be used to track you. Some changes have been made in recent years that use random Bluetooth IDs for scanning for nearby paired devices, but it's not watertight. All of this pertains to Bluetooth LE, btw. So if the Android remote app uses Bluetooth in any capacity, it has to request the location permission.
Hope this clarifies!
It's used to make sure you are only connecting to local Android TV boxes.
I think that is the only Android TV remote app available.
To be honest..I don't think it is sending that location anywhere. So I wouldn't worry