As some of you know I take quite a lot of photos, use Flickr etc.
It's useful to know where they were taken (as accurately as possible) which is why I got an iPhone as soon as they/contracts were 'affordable'.
The camera (3G model) was 'OK' but later ones are really pretty good for web use quality.
Main drawback of any 'simple' camera is lack of decent zoom, so I still have a 'proper' camera.
For a couple of years I've been using Eye-Fi cards. The Geo-tagging is pretty good in urban areas. It relies on mobile masts and wifi hotspots for triangulation, not satellites. In addition the cards uploads to your computer via wifi.
The newer X2 cards do this and other things - including sending pics over 'chosen' wifi and some hotspots direct to Flickr. (The only one I've managed to use in Edinburgh is Word of Mouth Café down Leith Walk).
Very recently they have added Direct Mode - "Uploads photos and videos directly from your camera to your iPhone, iPad or Android device in a snap!"
TODAY the updated iPhone app has been approved so it's possible to take 'long lens shots' and get them sent directly to your 'phone where they can be edited and e-mailed etc. (as long as you have a 'phone signal!)