>Calling it "tracking data" is wrong, even.
I wish people would stop saying this. Of course it's tracking data. There's nothing wrong with that. One of the phone's features is tracking your location so you don't get lost.
Personally I think Apple has overreacted. They just need to provide a configuration setting for the size of the cache, and more importantly not include it in backups. A cache is not important enough to back up. But as far as the size of the cache, the defaults sound sane enough.