Seriously, Apple should offer some way to turn this off. At the very least, the file should not be created if you are not allowing anything to access your location information.
I know we're all excited about the interesting applications of the availability of this data, but what about the privacy implications? (Or is it generally assumed that the fact that Apple is gathering this data is a bad thing from a privacy perspective?) By no means am I opposed to them offering this feature. It seems like it could be very useful. It's just a matter of opt-in vs opt-out.
From the article:
"The most immediate problem is that this data is stored in an easily-readable form on your machine. Any other program you run or user with access to your machine can look through it. The more fundamental problem is that Apple are collecting this information at all. ..."
I'm not an iPhone user myself, though I'm likely to get one soon. Not sure if this affects my purchase decision, which I suppose speaks volumes about the current smartphone landscape.