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Me too. Can't seem to find anywhere just exactly what does "WiFi Networking" do?
 
It tags wifi networks with a gps coordinate and sends the information back to apple. This in turn allows apple to improve cell lock on etc etc.
 
Second to last paragraph:

Crowd-sourced Wi-Fi and cellular Location Services

If Location Services is on, your device will periodically send the geo-tagged locations of nearby Wi-Fi hotspots and cell towers in an anonymous and encrypted form to Apple to augment Apple's crowd-sourced database of Wi-Fi hotspot and cell tower locations. In addition, if you're traveling (for example, in a car) and Location Services is on, a GPS-enabled iOS device will also periodically send GPS locations and travel speed information in an anonymous and encrypted form to Apple to be used for building up Apple's crowd-sourced road traffic database. The crowd-sourced location data gathered by Apple doesn't personally identify you.

http://support.apple.com/kb/HT5594
 
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