If you turn off "places you've been" it is not tracking you by location... And disabling GPS does not defeat your location tracking either.
The only way to make your phone "untraceable" is to put it in airplane mode and never enable a radio ever.
Who is it that you don't want tracking you via motion data? You see the data and Microsoft Servers see the data. If some investigatory agency gets a subpoena they can see the data, but they would just ask your carrier where your phone has been. It is tracked by pings off of towers constantly. Maybe if someone hacked Microsoft's server they would see you did 3,286 steps at place X on March 23rd, 2015. What does that get them? If some crazy ex asks, Microsoft won't give them the data. If some crazy ex has your log-ins and you are worried they can look you up, change your log-ins.
If you don't want your carrier, or Microsoft, or the authorities to know where your phone has been - there is ZERO way for you to prevent it other than throwing your phone away and never using another.
If you are worried about some other privacy breach, IMHO you are giving up way too much power that the tool you hold can leverage; all in the name of paranoia. The cloud is powerful, but it is on your side and will work for you way more than against you.
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