The 3G iPhone's second most persistently rumored and desired feature (or not), GPS is built in for location service hotness, which Steve says is "gonna explode." Location data comes from a combo of cell towers, Wi-Fi and GPS. Google Maps is still the default interface. Wilson says that's it's probable Telenav will do an SDK app with more advanced GPS sorcery though. Updated with video, which shows live tracking, local search, live traffic info and turn-by-turn navigation.

Video: iPhone GPS, Live Tracking, Traffic, and Geotagging

Video: iPhone GPS, Live Tracking, Traffic, and Geotagging

Video: iPhone GPS, Live Tracking, Traffic, and Geotagging

Video: iPhone GPS, Live Tracking, Traffic, and Geotagging

Though not mentioned onstage or in the press release, photo geotagging is listed on the new specs page under the camera and photos section. Neato. Remaining question: What's it do to that otherwise nice battery life? I wonder if those GPS makers are still in fact shitting themselves right now. Update: Yep. [Giz@WWDC, Apple]