I am also interested in finding out whether ipad (2) can receive gps information via the new iphone 4 hotspot feature. I have an iphone 4 and am considering buying wifi ipad2.
I have looked at the various posts where people think this is happening including the link above, but I think none of them are conclusive. I was wondering if anyone with the devices is willing to run some tests please? I think the following steps should be more conclusive in telling us what is going on:
1) Go to a spot where you know there aren't any wifi signals around. You can check by making sure ipad is not picking up any signals in settings->wifi menu.
2) Confirm by going to the ipad maps application. It shouldn't be able to find your location.
3) Turn on iphone 4 hotspot feature and get your ipad to connect to it.
4) Go again to the ipad maps application and it should now be able to find you.
5) Disconnect ipad from the iphone 4 hotspot and see that the ipad maps again cannot find your location. This step is important for the next step 6 I think.
6) As a final step, turn off cellular data under settings->general->network on your iphone 4, reconnect ipad to the hotspot and see if the ipad maps application can again find your location. Move around to see if it tracks your movement.
I think steps 5 and 6 are interesting because they tell us whether you need an active data connection on the iphone 4 for this to work. It shouldn't need it if direct GPS data is being passed to the ipad. On the other hand if it does need it it would suggest (maybe) iphone 4 is sending its mac address with location info to the apple database and then ipad is using plain "old" wifi location service via apple database and treating the iphone 4 as just another wifi (if it is true it might explain the 1min update interval reported on the other site).
This can of course be repeated with mywi instead of iphone 4 hotspot feature, but I am personally interested in the iphone 4 hotspot (which I think has more of a chance of working as it is apple tech).
Thanks to anyone willing to run the test
