Even if there was a separate OS running in parallel with Android, how could it access the wireless-networks-based and satellite-based location data? I thought that access to these things is controlled by Android.
In other words, when I turn off e.g. satellite location data in Android, can IZat (which, according to your post, runs outside of Android) or other similar spyware keep secretly using it anyway? That would be quite worrying.
I suppose that the location data can be collected by sniffing the low-level communication between the radio device and Android kernel, provided that it has been enabled in Android first. But even then, how could this location data be transferred out of the device? Are these "parallel-running" OSs also able to somehow "tap into" Android's network layer and send the collected data out?