I don't think this is a huge deal. There's a difference between writing a location based app that happens to pass along your location information to your ad net

I don't think this is a huge deal. There's a difference between writing a location based app that happens to pass along your location information to your ad network when it requests an ad, and writing an app that has nothing to do with location, but pulling location data out of the GPS solely so you can get better targeted advertising rates. The latter may be considered wasteful use of the GPS. I don't think this has any implications for Foursquare, Gowalla, or any of the other half dozen location based apps out there.