Actually, I think it will be much worse than that. Think: location based advertising. In order to use color you have to allow GPS for the app and, optionally, push-notifications. A perfect combo for pushing ads when you're within X range, etc.

I sent a tweet to them yesterday, but got no response. https://twitter.com/#!/tenaciousJk/status/51033367050846208

edit: group response to the below

No geo-ad platform has this low barrier to entry with this high of an incentive. Simply snap a pic and it's recorded and you're "checked in" if you will. You're doing something you want to be doing: recording your event, people you're with, etc. With 4S and Gowalla you have to want to check-in. Checking in is the app - not recording your memory by way of a picture/video. Sharing pictures is the biggest social app on the web.