Can these settings be applied separately or does location apply to both?
Yes, that's my current setting.
Whenever i delete messages, it asks if I want to stop sharing my location. I don't want to share my location via messages, only via Find Friends (which is easy to control).
Find Friends and iMessage have different purposes so I'm surprised the locations services for each cannot be handled individually (as seems to be the case).
Find Friends is a pro-active decision, usually for a small number of people, e.g. family.
Most people will send lots of iMessages and don't necessarily want to share location with all those people, e.g. work colleagues. Furthermore, when turning off sharing location for messages I believe it sends a message to the recipient advising so (which then causes issues - e.g. family asking why have you switched off location).
iMessages, being part of iCloud, must automatically track your location for other iPhone users.
And, I just found this, http://www.iphonefaq.org/archives/973926.
In Settings > Privacy > Location Services. The Apps are listed, but I do not see iMessages, only Messages. Switch it to Never and try it.
How to disable Location for iMessage but keep active for Find Friends?
