The iPhone Map App, which leverages Google's mapping services, became location aware with 1.1.3, and GPS enabled with the iPhone 3G and 2.0.
Basically, it superimposes a blue circle around the area it believes you're located. More confident the belief, smaller the circle. GPS lock, and a blue dot shows up. Only problem? Sometimes there's not dot and Google's lack of confidence results in a pretty huge circle. Well, last week Google's blog announced some improvements:
With today's launch, your location estimate will be centered closer to your true location, and we have also improved the calculation of just how good our estimate is. When we originally launched the "blue circle" on Google Maps for mobile, the circle usually stayed the same size no matter if you were in downtown Manhattan or rural Iowa. Now, the next time you're using Google Maps in downtown Manhattan, expect to see a much smaller circle that's also far more accurate. Conversely, when you're in a lightly populated area like rural Iowa, expect to see a much larger circle which also happens to be centered closer to your true location.
The best news? No update required. Anything tapping the Google force for location -- including the iPhone, benefits automatically! Enjoy!