It looks true, but this has been around for years, just not the handy plugin that makes it simple to visualise the data on a map, and the geo tagging.
I don't think the tip in the video is enough though, it just takes away the geo tagging. It may end up being possible to do something similar with the other image data that cameras (including phones) have always added to the files. These include time and date the photo was taken, and the make and model of camera/phone used. This may be used, along with technology such as "image search", to identify public spaces where a picture was taken, along with date and time. This would still allow patterns to be detected, like always in a particular park at particular times.
Best to educate children about this, rather than trying to clamp down on it behind the scenes.
Before the internet, children were vulnerable if someone knew them by name, and parents were told never to send their children out with their names on their clothing in an easily visible way.
I once turned down a lift home from my Uncle George because I rarely saw him and didn't recognise him or his car at the end of the street. I had been educated about this type of "stranger danger", and used "if in doubt, say no", and made my own way home to verify the claim, which turned out to be true!! I must have been only 5 or 6 at the time. Knowing my name, where I lived, etc, didn't cut any ice with me, I still refused to get in his car.
Kids often have phones from a young age, so it would be worth having geo tagging turned off by default by the parent as the kids may have no idea about it. Facebook may be for 13 and over, but younger kids have sites they can use, and Facebook only acts when someone under 13 is reported to them.
It would be best to give kids a "dumb" phone just to make calls home and take pictures and play music, at least this way they can't fall victim to malware and threats such as this. The problem is getting this past the "smart kid" who knows what phones are "cool" and which are "for losers" from the age of 5.
pretty wicked stuff
I have a 'dumb' phone - it's ancient, it has a camera in it that takes super low res and lousy pictures, I took one of an apple tree down the block and showed it to my mom, and she said, "Is that your dog?" 
