Funnily, I was a little scared and impressed when I just saw what my iPod touch was able to track. So much so that I googled something to the extent "Does my iPod touch have GPS" and landed in this thread.
Take a look at this map:
Admittedly, this is Stuttgart city center, but it still managed to not only keep the track within 20 meters (60 feet) at worst deviation and without any map information (the original track was plain GPS data, no map), but also to somehow acquire elevation data (see lower part of the image).
Has there maybe been an update with iOS 6 (which I recently installed) that amps up the wireless hotspot detection? How does this work anyways? The iPod can not possibly have locally stored all the hotspots and it doesn't have internet if it can't connect to the wireless. Does anyone know?