Apparently Apple inserted a special provision in the SDK agreement prohibiting developers from creating apps “marketed for real time route guidance; automatic or autonomous control of vehicles, aircraft, or other mechanical devices; dispatch or fleet management; or emergency or life-saving purposes.” No real-time route guidance? That means no GPS…
We know TomTom said that its app is ready to go on the iPhone so maybe Apple is just trying to cover its butt. However, these terms are copied almost word-for-word from the Google Maps API terms, which means that TomTom and others are probably free to use their own maps to do real-time guidance.