And if you do barf out the data via cellular and are in cahoots with your cellular provider - you get tower information that helps estimate/verify location. But again, all of this eats away at whatever savings from being impatient with the GPS signal.
With cellular and a modern LiPo, the battery life is, at best, measured in weeks.
The 'Future' of GPS will come ~2015 when the last of the 'GPS Block-IIIA' satellites are in orbit and we move from 50bps to 500,000bps. 
If 'afterwards' is when it hits a certain geofence or known network - you still are still stuck with waking up the device and querying the network interface...or doing some non-C friendly code to interpret a geofence coordinate.
To me, that's really awesome. Personally, I think the coolest use would be in running watches to finally get a perfectly accurate pace instead of a slowly-updating estimate.
I'll see if I can find the link to the researcher's page.
An IMU in a smartphone would be subject to 10 m/s/s acceleration at all times under gravity, 50 m/s/s on a rollercoaster, and 100,000 m/s/s if you drop your phone on a hard surface.
Let's say we don't mind losing your location if you drop your phone, so we pick an accelerometer with a maximum range of 50 m/s/s.
Now, how accurately can we measure acceleration? The raw image setting on a fancy digital camera is 14 bits, which gives 16384 levels. CD audio is 16 bit, so it has 65,536 levels. Assume you can come up with a design that offers a 32 bit range, for a full 4 billion levels.
That means your measurements will be precise to 0.0000000116 m/s/s - pretty accurate, right?
The thing is, after 24 hours your phone will have an inaccurate estimate of its speed (0.0000000116 m/s/s * 24 hours = 0.001 m/s) and after 24 hours with that inaccurate speed estimate you'll have an inaccurate position estimate (0.001 m/s * 24 hours = 86.4 m) and the longer you leave it going, the bigger the error can get.
TLDR: You need super-precise sensors to do dead reckoning that stays accurate for long periods.
Inertial Navigation Systems like OxTS make  use GPS to get rid of this integration error that accumulates over time. For applications in vehicles you can also use the vehicle's speedometer, so you're measuring speed directly, which means fewer integration errors.
Keep in mind that as precise as gyroscope can get, they could be susceptible to shock (if you drop it on the ground).
But I am interested in seeing how it could develop into
The viability of this seems tied to how long 'later' is. Most consumer uses of GPS require quick response times or you'll see a huge dropoff in usage.
So, I could see there being some consumer uses for it, if you could demonstrate that the power saving was worth the wait.
On the other hand, this will open up new uses for GPS and potentially let you utilize it in a range of applications that just need to record time/position instead of immediately report it to an app/user. In exchange for lack of immediacy, users acquire higher fidelity data. I'm expecting to see this be more relevant in scientific fields than consumer electronics.
This is where it would really come into its own. From what I've worked out in the past, best-case for battery life today for trackers is to record a coordinate roughly every 4 hours and sleep. Longer than 4 hours, and you have to do a cold lock, which as discussed takes significantly longer. With my GPS unit, this translated to around 3-6 months of battery life with 1000mAh capacity, depending on how good you are at optimizing power.
This is why your iPhone or Android is a hundred or even several thousand times faster to "recalculate" a new route when you take a wrong turn than your trusty, old Garmin. That's also why if you get lost in the middle of nowhere w/out cellular reception, you'll be hoping your old TomTom is still in the glove box - the maps and routing algorithms are all stored on the device itself (though this means the data on it gets outdated and you will need to update it, often for a price).