I honestly only used latitude like once, but from my recollection it was very janky and hard to use. And I think there was also some weird stuff where like by default others could see you on the map. Not friends, but just other latitude users in general. Find Friends feels very private.
As far as the creepiness factor.. yeah, its kinda there. I expect to turn it off once the fun wheres off. I think any sort of "creep factor" was completely mitigated by the excitement of new phones. Its also just a thing that I've been wanting to check out for YEARS. Like since Helio Mobile was touting that feature in the Pre-iPhone era. I wouldn't want my family or really any of my other friends to track me either, though. Its a very selective process to figure out who gets to track you and who doesn't.
I think you're right, I think the only reason it feels so powerful is because I do talk to this one specific person a lot throughout the day. So its just another layer on top of that. I mean, just by the nature of communicating so often my whereabouts are pretty much known anyway.
You can also disable it without unfriending people though. I think. So like, you know, turn it on a music festival or when you're going to meet someone downtown or what have you.
I'm still stewing on my experiences with it. I'm not really positive how I feel about it yet. But it is very thought provoking. It feels like the first genuinely "new" feature I've played with in a long time. Somehow having that knowledge of a person's physical location changes everything about communicating with them.