Apple just released iOS 4.3.3, an update aimed to fix the location tracking issue that raised a bunch of concerns over the last couple of weeks. With this update, the consolidated.db database that stores the location data will be reduced in size, and that database will no longer be backed up to iTunes. In addition, if you turn Location Services off, the cache gets deleted entirely. Plug your iPhone in and have iTunes check for the update when you get a chance--jailbreakers, you'll wanna wait until there's a compatible fix.