This is true for any Android app requiring Bluetooth communication, not sure about iOS. An app might be able to figure where you are at based on the Bluetooth beacons (or any wireless) devices around. Hence treating it as a location permission as well.
This has been changed starting with Android 12 where they have specific Bluetooth permissions that filter out Bluetooth beacons. But it will probably take while before apps update using the new permission
https://developer.android.com/develop/connectivity/bluetooth/bt-permissions
Really depends on the content you consume. A lot of indie games and old games could benefit from 1080p. Especially with small text. And for more power hungry games you can always choose 720p