But it has been demonstrated that the location database is stored on the iPhone
No it hasn't. Only a list of locations that have come within range is stored, that is not a database and nor are they "user locations" in any meaningful sense of the phrase.
The full database is too big to be stored on the device and a subset is only sent on request for calculation purposes, afaik that is not stored. Nor is any of it available to third parties.
All this, and much else, has been pointed out to you.
I've never yet banned anyone for disagreeing with me and don't intend to, but I (and the other moderators here)
have banned posters for persistently pursuing a point that has been demonstrated to be false.
It's called trolling.