All cell phones expose "your whereabouts and [provide] ways for others to track you without your knowledge" via cell tower triangulation. At a minimum, this point is FUD.
Perhaps they do, but without a constant connection to wifi or EDGE/3G that the iPhone has, you'd have to authorize it, in order for it to be sent. Probably not so with the iPhone. It's designed to constantly talk to the Internet (it's even got a new notifications framework that relies on communicating with Apple's servers).
I can't comment on whether or not you need to authorize each application in order for it to use the GPS APIs or not, but if you don't (which I assume you won't), this could be scary.
http://gizmodo.com/5014732/3g-iphone-first-hands-on
"I noticed that the iPhone asked me for permission to give both the maps program and the camera app permission to use my location."
Considering that OnStar is apparently being pressured to provide a remote "kill switch" to law enforcement, that printers put hidden codes on each page at the behest of law enforcement etc, would you be troubled if your phone secretly had a feature to pinpoint you within meters without your knowledge, upon the mere request of someone who appears to have the correct law enforcement credentials?
As to already being able to do this via triangulation etc: perhaps, but this would make it even simpler; as I recall in the CDMA world pure network-based location can't get more accurate than 250m and can't do elevation.
BREW: http://www.devx.com/wireless/Article/11195
J2ME: http://developers.sun.com/mobility/apis/articles/location/