I got 4.3GM and did little test driving around with iPhone-iPad tethered by WiFi. Surpisingly, location on iPad Map application changed(although very delayed) as the car moved around. And this was not like urban area where it was completely covered by WIFI signals.
So it looks like iPhone might be passing on location info as well as internet connections to iPad...
So it looks like iPhone might be passing on location info as well as internet connections to iPad...