It would be interesting to know how coarse the data exposed to mobile ad providers is -- does anyone have any experience here?

Were I implementing mobile ads, the precise location would stay on the device, and the information sent to the ad server would be city or at least zip level.

Except for the whole classification of apps (Free) that are going to be squeezed by this. By eliminating competition, Apple gets to decide just how profitable (if at all) app companies are going to be.

This isn't good for anyone but Apple.