WiFi had nothing to do with it. Verizon has had WiFi phones for years. But they didn't need to rely on WiFi anywhere near as much as ATT.
As an ex-verizon customer I don't recall a single wifi capable smartphone in verizon's lineup. Even now, I don't believe there is any.
On top of that, they are notorious for crippling the gps on their blackberries so that you have to pay for vz navigator to get it working.
I don't see Apple removing or crippling any feature on their iPhone, especially gps or wifi.