I get that they don't want to waste power on GPS
#2 would be useful for iPhoto too. I could take a picture on my regul.
Making this a web app was dumb, but the concept is dumb too, do you really want to be tracked without you knowing. loopt has a better concept, and with APNS it could be better.
As to the photos and gps.
Iphone pictures via anything but the camera app strip the exif info, so no location info unless you use private api's.
Even if it was there the info probably wouldn't be correct.
I am writting a couple apps.
One of them records the gps info along with the photo in core data. And makes the photo and info available for sharing in a number of ways.
iphone to iphone
iphone to webserver
iphone to facebook
But I'm finding I need to take a number of samples to get very precise gps locations. And even then it may be off several meters.
My solution is to allow a correction screen, where the user can move the pin on that is placed on the map to a new location, if the initial position is wrong and than resave the information. Thus the location info recorded in the database is very precise.
I imagine this app will be useful for geotagging and maybe archeological applications. Even there its pretty hard to do this type of touches events with the public mapkit.
So I seriously can't see how a webapp that doesn't even use the gps, just network triangulation can be very useful.
But again, I would never want to use lattitude.