Watch this video which outlines the benefits of persistent location on mobile phones. Persistent location is the active monitoring of multiple sensors on your phone to determine your location. Location is important for application running on your phone to determine intent and anticipate your needs before you do.
For example, sometimes you are indoors and don't have a view of the sky for satellite and a different sensor maybe used to determine location. Companies like Skyhook use a database of WiFi hotspots IP addresses to determine location.
Many privacy advocates will likely have a problem with knowing too much information about mobile phone users. However, the benefits far outweigh the the privacy issues. This industry needs to be very transparent about the use of the data and disclosure of how to use it. Data silos might be the solution.
Tyler Bell Factual - Databases of geo data
Peter Marx Qualcomm - Chipset manufacturer
Sam Liang Alohar Mobile - Automatic place detection platform
Kipp Jones Skyhook Wireless - WiFi Location Database
One question that was not asked of the panel that I would like to know? What happens if you are in a complete dead zone with no WiFi, no view of the sky for satellite or cellular signal?