Glenn at AnyGeo also just posted about a hardware add-on called locoGPS which will provide real GPS on the iPhone, which of course will give a more accurate location. It uses cell tower information to give an approximate location (reports seem to suggest accuracy to within a few hundred meters in urban locations, and lower accuracy in rural locations). This functionality was released a month or so ago on other Google Maps Mobile platforms, as Ed Parsons and others reported, so it would certainly make sense for it to appear on the iPhone sometime soon. There are unconfirmed rumors via various Mac blogs ( GearLive which has photos of what is claimed to be the new update, and this was commented on at MacRumors and The Unofficial Apple Weblog) that the iPhone will soon be getting a firmware update which will add "locate me" functionality to Google Maps.
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