The only way to ensure location privacy is to interfere with GPS. When you wish to use the location feature, turn off the GPS interference. As such technique is pretty esoteric, it's unlikely Apple will develop counter techniques until it becomes more popular.

As has been mentioned before, relying on some icon on your screen is rather naive unless Apple has provided some legal assurance that we can.

It would be a good question to pose to Apple - can the icon be overridden to not be shown or shown so quickly that it is effectively invisible?