There is no way the iPhone will carry GPS. It is simply too power hungry. It is encouraging to see more confirmations for a 3g June release though. It seems likely as the 2.0 update is already scheduled for June. Just one more thing anyone?
Like 3G was too power hungry in 2006 to have in lots of European phones like the N73?
Like A-GPS was too power hungry to be in the N95?
Like A-GPS was too power hungry to be put into a watch ala Forerunner 405?
The modern round of A-GPS chips are pretty good powerwise. It would be on just for brief moments if necessary. The reduced length of time to get an accurate lock helps with this. Have a look at the Forerunner 405 if you don't think you can put A-GPS into something compact.
Even if it isn't included across the line, it could be in a Pro version, it will certainly be an external accessory upgrade open for those with current iPHones that want SatNav.
The Hammerhead II chip is one such chip, being optimized for mobile devices requiring high performance, low power and an extremely small footprint. The diminutive single-die chip measures only 3.7mm x 3.6mm x 0.6 mm, for a total footprint of less than 14 mm², resulting in the worlds smallest GPS receiver.
Cost ~£5 a chip in quantity (or less) and would be too large. Or the something from sirf like the SiRFstarIII chip?
Edit: Kevin probably could probably buy a new 3G iPhone from the ad money he brought in from his DIY youtube Dugg sham of a story.
