According to some allegedly leaked screens from the new iPhone software beta, the iPhone camera is now asking permission to transmit the user's location before loading. The screen in question certainly implies geotagging with the message "'Camera' would like to use your current location," but it doesn't outright confirm an iPhone 2 with GPS, since the iPhone's current Skyhook service could be used for geotagging just as easily. And since Skyhook could work, then all current iPhones could get geotagging, too.
Just remember, these kinds of screenshots can be made in one minute with the SDK or the independent Toolchain. [appleinsider]