Is your life so boring that you spend most of your time in "default locations"?
What jet-setting life do you have? I have a job, I go there and back every day. Maybe at night I'll go to a restaurant or bar or something. On the weekend I'll go to the beach, maybe see a movie, maybe go see a band play (again: Los Angeles). This is all within 20 miles of my home. Every now and then I'll go visit my folks who live 60 miles away. Sounds pretty typical to me, and easily covered by 2-3 default locations as a point of reference. Where exactly do I need to be going to not be labeled as boring?
Um, I'm not claiming that iPhone NEEDS GPS right now. I'm saying that in the future, just about all mid- to hi-end phones will have GPS, and iPhone will get it as well someday. That said, I could picture myself getting the current iPhone, and lack of GPS is not a big deal for me at this moment. But I do think that GPS will be very important in the future.
Here I agree, but I think you are discounting what is already available. I think many people will be totally floored by the google maps integration already on the phone. I doubt many of them are going to think "this is so totally lame... it doesn't know *exactly* where I am. So useless." Eventually GPS will become a standard for convenience, but it's not like a lack of GPS costs you functionality.
It's like cameras in phones. People wondered "what's the point?". And now, most people insist that phone must have a camera. Sure, it' not as good as a "real" camera, but it's always with you. OVer here people use them to take quick notes in lectures for example: just take a picture of teachers notes. Pople ue them as memory-aids when going to new places: take pictures of points of interest, so you can track where you were. Things like that weren't thought about when first cameraphones were releaed, but the cameras enabled all those things. Same thing will happen with GPS.
I'd say the camera on a phone is more useful than the GPS, because the iPhone DOES have mapping capabilities, just not fancy ones. It's more like having a crappy VGA camera-phone (no GPS) vs. a 3 megapixel camaraphone (having GPS): one is better than the other, but you are getting the functionality in either case.