I don't understand the outrage on this-- your wireless carrier probably has an identical file somewhere as well. At least you have a copy of it.
My suggestion: for the next YC application, invent a way for people to sell this data back to marketeers. I'll sell my data for a lot less than what Apple's or AT&T are charging.
and only your wireless carrier. Now anyone who you lend your phone to while you take a bite to eat can read your location data. Or Apple. Perhaps if it's not encrypted, and there's an iOS vulnerability, anyone could read the data. Not just your wireless carrier.
That's why this is a big deal. Why store this data? If it most be stored, why has no effort been put in to keeping it safe? Just because one company could read it before doesn't mean that it's okay others can too. We naturally assume (and rightly so) that our wireless carriers can and do track our every move. But we "trust" them; we sure as hell don't trust anyone else.
Edit: And it's even creepier that this was secret. It's not like we're getting mad at official Apple TOS or policy; they didn't tell us they were tracking our location and storing the data forever and ever. Fuck that, that's scary and unpleasant.
The FBI has my FBI file and only the FBI file. By this logic, I shouldn't FOIA for my FBI file because someone could break into my house and steal it.
Also, I carry a lot more sensitive information on my phone than the cellphone towers it talks to-- I suspect this is the same for most people. Anybody that's installed, say "Mint" on their iphone, has used the "email" application, or sent the occasional drunken SMS message probably has a lot more to worry about than the location data stored on their phone.
I guarantee you I protect the data on my phone a lot more than Apple does. Apple sells it. Here's an opportunity for me to sell it too.
My suggestion: for the next YC application, invent a way for people to sell this data back to marketeers. I'll sell my data for a lot less than what Apple's or AT&T are charging.