"It turns out that your iPhone is keeping a record of everywhere you've been since June. This data is stored on your phone (or iPad) and computer, easily available to anyone who gets their hands on it. Why? Apple won't say. We're creeped out.
The enormous privacy startle, apparently enabled by this summer's iOS 4 release, was discovered by two security researchers, one of whom claims he was an Apple employee for five years. They're equally puzzled and disturbed by the location collection: "By passively logging your location without your permission, Apple have made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they explain. All it would take to crack the information out of your iOS device is an easy jailbreak. On your computer, the information can be opened as easily as JPEG using the mapping software that the security experts have made for download"
TPM - iSpy Conspiracy: Your iPhone Is Secretly Tracking Everywhere You've Been
It's well past 1984. And the government is tracking you less than marketing firms...