The problem is this data is being recorded without the user's knowledge or permission. (Unless it's a tiny line in the EULA I'm unaware of.)

If the data is being used to help the performance of Location Based Services, there is no need to keep years worth of data, that persists, and is backed-up every time you sync. Apple could simply keep a log of the last 4 or 5 data points.

Further, the data may not be super accurate, but that's only because the technology isn't good enough. If it were (and it will be eventually) that table would have pinpoint precise data. The precedent is being set right now. Is this ok? Personally I think this sort of behavior is unethical. Location tracking logs should be opt-in. It certainly shouldn't be hidden or a secret.