Apple's response to address the situation seems reasonable.
Apple denies iPhones store user location - Yahoo! News
However, in true Apple form, their arrogance is blatantly apparent:
"Users are confused, partly because creators of this new technology (including Apple) have not provided enough education about these issues to date," Apple said in its statement.
Wow, so now it's the user's fault because they don't understand this hidden system file.
