Wouldn't surprise me at all if it was true I read yesterday dropbox regularly hands over your files as well. It is really like 1984 last few years and it's only getting worse.
There's already a jailbreak tweak which periodically clears the location log. It's called "Untrackerd". Yet another reason to jailbreak. You may not be doing anything illegal in your day-to-day life but if you want to broadcast your every movement, that's what foursquare is for.
Just don't have your iPhone with you while having sex. By the way you're moving, Verizon can tell that you like it doggy style.
Sorry, conspiracy theorists, but this is looking like a bug and/or lazy programming, and nothing more. It's likely to be fixed with the next update: http://bit.ly/idy1rL (Read to the bottom) For those who don't know, the author of that piece is probably the most well-sourced Apple blogger on the planet. He can be a bit of a tool at times, but he doesn't mess around with his reporting.
So you guys would let anyone into your home because you have nothing to hide?.. Just because you don't have nothing to hide doesn't mean you should be so willing to give up your privacy/rights...
iPhone is annoying to this point, but if you're worry about "privacy" leaking, you choose to stop using iPhone from now on.
The file isn't encrypted either... But... When we mindlessly tick the 'I Agree' button to the terms, your accepting that Apple may collect data to use it for improved services, products and advertising. And if it makes you feel better, it's only been tracking since iOS 4
I don't think so after reading this http://news.cnet.com/8301-31921_3-20056344-281.html I suspect the file probably will be gone next firmware update but I'm almost positive there will be a differently named file probably encrypted this time so it isn't so easily discovered. I think all phones probably have been doing this for a while in truth apple has just been the first caught out.
Look, I'm not a fan of privacy being taken from anyone. However, I agree wholeheartedly with Hodapp. I read a cover story in time magazine, about how every part of you is formed into a profile and used to target your specific interests. It's not just Apple. They're actually late to the game. I think the fuss with Apple right now, is public opinion sees them as more benevolent than other companies. This has been going on since the modern Internet age, especially with Google (their ads and services). I'm not so worried about what and where I go. This stuff is blasted out on walls and such willingly all the time by fellow Facebook participants. Facebook, Google, Pandora, etc. All do the same thing you're reading about now. Lastly, the only issue I really would have is when companies with camera connected devices (Kinect, iPad, Flip, etc.) use the cameras to record snapshots, video or images for their data behind your back. I wouldn't like that at ALL.