iNat eng here, non-authoritative rep
handling this concern is on our radar but I can't speak to delivery timeline. It my involve timed "obscured" windows (obscure things for this hiking weekend) and/or user-configurable geofences (obscure observations around my home but not anywhere else).
we _also_ want to respect the geoprivacy of wildlife: sometimes observations generate _problematic_ attention. For sensitive species, we want people to report them, but we don't want to be complicit in or responsible for interested people flocking to the observation and potentially spooking the observed species.
oops, sorry, I double posted this from an edited draft, please see my other comment for more helpful links to actual iNat behavior on this.