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I almost always do a factory reset after a firmware update... just a habit I got into a long time ago. I can assure you that the service in question is still there after a reset (and occasionally shows up in GSam's list of apps, but it doesn't noticeably affect the drain on my battery whether the Location-based services are on or off.
The idea that it's not an Amazon initiated app is ludicrous, of course--update, factory-reset ... there it is. But if my device is any indication, the factory reset does seem to tame the beast. It's understandable that not everyone is willing to take that semi-drastic step, though.
They'll probably deny it's any of their doing right up until the bugfix update is released that takes care of it.
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