Lineage includes many more Google components. As an end user this means that you’ll for example be able to use the Google location service, using WiFi and bluetooth to identify where your phone is even when you don’t have GPS reception.

This is false.

The only thing Google LOS has besides the AOSP is using Google’s connectivity check to my knowledge.

LOS comes with no Google apps or play services, you must install those yourself if you want them.