As diTii reported, that Apple is working to release an updated to iOS to fix what Apple calls a "bug" with its location based services.
Today, Apple ha sreleased iOS 4.3.3, which fixes the location tracking issue that many people found to be disturbing. Apparently, information was stored in an insecure manner and anyone could access it. All the needed was your iPhone, iPad, or the computer with which you synced your iOS device. Many users believed that Apple was tracking its users. Apple responded by saying, "Apple is not tracking the location of your iPhone. Apple has never done so and has no plans to ever do so."
"This update contains changes to the iOS crowd-sourced location database cache." The size of the cache is reduced, iTunes no longer receives the cache backup, and cache's are deleted completely when the location services are turned off.