OK, like any topic we should all be on the common ground about what we are talking about. Some guys pulled together this discussion about finding hidden tracking information.
The video is fairly short, but worth a watch just to speak somewhat intelligently on this issue:
http://mashable.com/2011/04/20/iphone-location-history/
The crazy part is, you have to keep in mind the ignorance of all the media people, all the 'journalists' all the comments on places like the Wall Street Journal. These people thrive on conspiracy and almost go out of their way to never get facts to talk about an issue.
After listening to this video I realize that these two have no idea what they are doing, while claiming that they have discovered something dramatic and private, they have only found that the LOCAL iPhone backup contains a database file that stores long lat information with time stamps, as well as country codes and area codes. Kind of like a call history you find in ALL cell phones. Additionally, the cell phone works by tracking it's relative positioning based on communications with cell towers. So the info they found was just the mechanics of cell phone and GPS technology. Yes, the phone keeps track of where you have been physically in relation to those towers. Probably moreso a mix of reliability for service - caching local locations and speeding up the ability for the device to switch from tower to tower. These boys also bring up the fact that every device has a unique ID as well as every tower! Wow. The next discovery they may make will be the fundamentals of ip v4 addressing and the TCP/IP stack (can't wait!!)
Seriously, watch that video and give us your impressions of what these two brains figured out.
Also, how come no one is talking about FB invasion.. which is really the whole sale invasion of privacy and selling your information - a practice stolen directly from credit card companies. Banks, insurance companies, brokerage firms, and credit card reporting companies spend more time and make more money without consent than any other industry. Even cell phone providers.
These boys wind up their discussion saying they really are not sure what this location information means, and that it remains in the iphone owners hands, and they cannot prove that it EVER leaves the phone, nor the PC. It is an ever growing file, which just is not practical for Apple to track of and constantly send to their offices. Probably, Facebook and 4square collect more information than Apple from any one iPhone.
Here is an excellent rebuttal that explains technical detail why these two are wrong:
http://tinyurl.com/alev3reasons
The real question to ask is - why would anyone want to hit Apple with this issue, except for their own agenda? I am talking about the press that gave so much importance to this discovery...