I'm not concerned at all about the location tracking. As recent reports have come to show, the location tracking information is not sent back to Apple or to anyone. It just resides on the i-Device. The only potential issue here is that the file is not encrypted either on your i-Device or on the computer that it syncs with. That means someone with technical know-how can use your tracking location information but only if they have physical access to your i-Device or computer that the i-Device syncs to.
Methinks that the media has yet again heightened the issue to levels that are unwarranted.
Yes, Apple can fix this and probably should but it is not such a big issue as a data leak or like the recent SSL breaks.
Police have the right to do a data dump of your cellphone at traffic stops. So it's actually quite easy for someone to get that data.