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Yes it can, and so can recordings from remote activation of the mobile phone mic: http://news.cnet.com/2100-1029_3-6140191.html

I'd also like to know whether this information can be or has ever been used in court as evidence. "Where were you on the night of such and such...?" may become a question of the past. Frightening.

Oh yeah, it does get used in court in the US. I paid attention to a murder trial of a neighbor that happened nearly a decade ago, and they presented evidence of his cell tower connections contradicting his story of whether he was in a certain state at the time. It was by no means a substantial part of their case though, they were just piling things on. But yes, it's definitely admissible, I assume it happens all the time.

Falls under the category of circumstantial evidence, which can certainly tip the balance beyond the "reasonable doubt" criteria if there is enough of it.

Don't forget that it's not actually your position that is being tracked - it is the position of your mobile phone device, which could be carried by someone else. As such, that limits its value in court.