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Yes, the 3Gs can use cell tower triangulation and WiFi access point triangulation. The WiFi access point location feature only works if there are nearby known WiFi access points.
 
Yes, you can still use it but dont expect to get any accurate location.
It might show you a few miles off from where you actually are.
 
You won't want to try to navigate in your car without GPS but you could still navigate. As stated above, the margin for error is much larger without GPS.
 
Don't do it man, e gps is very valuable. Activate it with h2o wireless, it will give you real 3G connection and service from at&t at prepaid prices, you don't need to jailbreak either! Just pop in the sim and that's it.

Way better than T-Mo for an iPhone,
 
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