Q: Notification when departing or arriving a location does not work in the latest version of find my friends (ios 7).

This is a user to user community, Apple are unlikely to read your comments, if you have any suggestions that you think might enhance iCloud you can send Apple your feedback here.

I asked aobut this at the Apple Store.  They were aware of the problem and suggeste that I back up my iPhone and then do a Restore from backup.  This apparently reloads the OS onto the phone.  It worked and I get my notifications again.