Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)
iPods use local wifi data to see where you are.
As for the camera app on the iPhone geotagging is fine unless your recording video then the gps stays active and it eats battery life for breakfast!
Good point. Typically I take pictures when I'm on a trip and at home. And I have them all broken down into albums. So I'm not sure geotagging would really do anything. I know where I was when I took it.
I think I might use it more if the picture itself had the map associated with it. What I mean is I have to go to places to see where the picture was taken. I can't go to albums and go into Williamsburg then say oh this shot is really cool let me show you where it was taken. And open the map from the picture. I have to go to places and find it on the map.