When you add someone as a friend, you can see the location of that person. Without him or her adding you back. I think it would be better if you only can see that after the one in question makes the friendship mutual.
You can see where people who are not your friends are as well as those who are your friends though. I don't see what difference it makes if they are your friend or not at this point. Unless that add some privacy settings to the games that allows people to choose if others can see where they are or just friends.
When someone adds me as a friend, and I don't add them back, I usually have my reasons for it. Why would you want a stranger to know where you're at? When you think about it, it's kinda logical, at least, in my head. The privacy setting thing is a great idea too.
I like the idea of a privacy setting since I think other people might find it useful, but personally I wouldn't bother with it. I don't particularly mind the other citizens of Ur seeing where I am. They gain no useful advantage, really, since my profile page shows where I live (not a problem, no-one else has a key) and I don't stay much in one place so by the time they turned up with whatever pesky plan they might have, I've more than likely moved on.
When SecondLife launched, you could see where all your friends were and then people started to stalk other people and it got out of hand. Privacy settings were introduced later. I can see the need for privacy however I personally don't care if people know where I am.
I don't care if people know where I am but I find it odd that I'm on their friends list when it's not mutual. Although I guess I could always just block them but I shouldn't have to do that.