I agree, but at the end of the day anyone that is that concerned about their privacy and even remotely tech savvy will be able to find a way to opt out. A friend sent me the below article about a utility for jail broken phones that can be used to get rid of the tracking data. In regards to the Google data, does it appear to you that the latest timestamps are transmitted anywhere? The way Google rolls I would speculate that they would use timestamps and location with their amazing maps resources and cloud storage to independently store all of the metrics.
I'd argue that is it neither, but is instead so that both Apple and Google can eventually offer localized and personalized marketing dependent on the area that your phone is reporting that you are in or have been in fairly frequently. An example would be giving you a discount code for that restaurant that you have passed by 4 times in the last 2 weeks at around dinner time. This is part of my theory about why apple is building the enormous data center in NC.
Tough at the moment, but if domains keep being seized under questionable circumstances it might be the way to go. At the very least it is interesting reading. I read an article that I can't find at the moment that made a convincing argument that this would be the direction things would head to maintain a truly neutral Internet.
http://thenextweb.com/apple/2011/04/21/worried-about-iphone-...