iPhone Is Tracking It's Location, What Does It Mean To You?

At the Where 2.0 conference Alasdair Allan and Pete Warden announced they have found that the iPhone and iPad 3G is collecting and storing location information on the device. The collection of the data has been occuring since the release of iOS 4. The information does not appear to be transmitted from the phone, but it is being stored unencrypted and unprotected on the device, although the only way to access the data is via the PC where you back up your iPhone.