I've looked at a number of facebook apps, and it seems that they require permission to read my precise location. This includes Stream, Fast, Friendcaster, and the official facebook app. Can anyone recommend a Facebook app that does not require permission to read my location data?
These apps read your location for post location tagging, and there no apps that I no of that do not have the location permissions. There are some workarounds however:
You could use http://m.facebook.com, which would only be able to gather IP based location, unless you allow it to access your location via the browser (this is easily denied, and an option will be displayed when it first attempts to access location - you can just select deny. This is in the Android browser).
Disable Location Services
Another alternative, is to just disable all location services in your settings menu prior to launching the app - the app can still get your location, but it would be very course (to about town level).
Deny Location Permissions to App(s)
If you're rooted, you can use an app such as permissions denied (paid app) to deny the apps the permission to access your location - be aware that the app may force close if it tries to do something it doesn't have permission to do.
There is an xda developer who created just such an application after becoming frustrated by facebook's blatant disregard for users privacy.