I made a testing application for Gps, Wifi and Fused Location Provider and testing it for 2 days. It's better because it uses both of them and most of the time it's the one most accurate. Also, Gps data is a very noisy data that causes jittering, to solve this low-pass filter or other filters are used. One of the most successful filter used to get most accurate results is Kalman Filter. FusedLocationProvider use this filter same as RotationVector which is a fused sensor combines hardware and software. RotationVector uses accelerometer, gyroscope(if available), and magnetic field sensor to get and filter positition and azimuth data.
Location.getProvider for Gps with LocationManager returns "gps", Wifi returns "network", and FusedLocationProvider returns "fused".
When GPS is off and I set priority to HIGH, does that mean that the GPS will be automatically turned on, or not
Anything other than "Battery Saving" turns Gps on if available. This settings available on my Android 7.1.1 phone. Setting for location was different on previous versions of Android on user's side. As a developer to enable using Gps you should set mLocationRequest.setPriority(LocationRequest.PRIORITY_HIGH_ACCURACY);
PRIORITY_HIGH_ACCURACY - Use this setting to request the most precise location possible. With this setting, the location services are more likely to use GPS to determine the location.
Setting Priority also determines battery use level too.
Can I set UpdateLocation with Fused provider with HIGH priority on demand to save battery at least a little bit?
Yes, you can set interval of location request in addition to priority.
mLocationRequest.setInterval(UPDATE_INTERVAL_IN_MILLISECONDS);
mLocationRequest.setFastestInterval(FASTEST_UPDATE_INTERVAL_IN_MILLISECONDS);
How can I know what Fused provider is using (is it a GPS or a network provider)?
Location from Wifi never returns true for Location.hasSpeed() but Gps returns almost always true if you are outdoors. Also location.getExtras() have satellites tag which you can check for satellites which is only available for Gps. Speed may not be correct if you are walking or as far i've read so far, i haven't tried this on car, when speed it less than 5km/h it's not very accurate. I mean if you are using FLP and last location data contains speed info it's definitely from Gps.
Are there any negative points about it?
As of Android 8.0 and above there is location retrieving limit if you do not use a Foreground Service or get location on foreground while app is not paused for both FLP and LocationManager.
Also FLP requires GooglePlayService to be available on user's device and it should be above a particular version. 10 or 11 depending on which one you use. This can be trouble if you wish to publish your apps on a country, for example China, that bans Google Play Services.