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khahoon, there are some location-based benefits that B&N offers you that depend on your location. For example, if you take your Nook HD into a B&N store, you can read most any ebook for up to an hour. For free.
So at least in some instances, they have to be able to know exactly where you are. And track your usage.
At any rate, I have no issue if they want to track my location or purchases or whatever. In the case of the Nook HD, it is done solely for marketing/sales purposes.
It's totally different from the government snooping in on emails and phone calls and such. Though even in those cases, a reasonable argument can be made that the security benefits outweigh the minor loss in privacy.
--Pat
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