If chess.com really is displaying locations based on IP addresses, that is dodgy, and I really don't like that.
i honestly don't understand why this is such a big deal. we aren't showing IP addresses. we're showing ROUGH locations. you don't have to show your name, or anything about yourself. even if it locates you within 1,000 feet (which is HIGHLY unlikely - it's probably a 2 square mile radius), there are hundreds or thousands of people in that same radius, and unless you are walking around with a sign around your neck with your Chess.com username, how would someone recognize you?
i mean, let's take you. your name is "an_arbitrary_name". let's say i even knew which street you live on - what would i do with that? start knocking on doors asking for "an_arbitrary_name"?
i put my real name, my picture, and my city on here (i'm in mountain view). i'm one of the most visible people on the site. i've never felt like someone had the slightest chance of finding me through the map, of all places.

OK, before we get back to Transilvania and vampires :)
That interactive map displays the location of your internet provider. It isn't such a big deal, you are one out of at least 10,000 other users connected through that provider. In a big city with almost 2 million inhabitants, I think that's almost no privacy issue.