The media has been firing on all cylinders about the public uncovering of the iPhone's shady location database file. Speculation has been that Apple and/or network carriers are intentionally tracking the coordinates of iPhone users through the device's Location Services.
Experts on the issue have deemed the location database non-threatening, legal, and most likely a simple mistake on Apple's end. If you want anymore clarification, Steve Jobs himself has shed some light on this issue, calling it "false."