Much of the concern about the iPhone and iPad tracking stems from the fact the computers are logging users' physical coordinates without users knowing it — and that that information is then stored in an unencrypted form that would be easy for a hacker or a suspicious spouse or a law enforcement officer to find without a warrant.
Researchers emphasize that there's no evidence that Apple itself has access to this data. The data apparently stays on the device itself, and computers the data is backed up to. Apple didn't immediately respond to a request for comment by The Associated Press.
All I can think of is that this file allows sites like FourSquare or other location marketing firms to verify if you actually go where you are supposed to go. So you won't be lying about trying some new place to earn a badge. Other then that there is really no reason why this file exists at all. It should just flush itself whenever the phone is turned off or just truncate itself after 2 weeks or something. I mean as soon as you turn on the phone it will grab a signal from the closest tower and you have your current location. You don't need to save that data from last year.
I'm sure Apple will survive this with their reputation intact. But I will certainly be buying a Xoom so that hackers can't pull this unencrypted file (I mean encryption is so cheap why is this file in open text?) and find out where I live and where all my friends live as well. Plus it will tell if I am home or not which is as bad as writing on your Facebook that you are out to dinner or something.
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