"Any other iOS devs getting a 500 error from Apple's geocoder?"
"Still trying to figure out what the deal is with location searches. (Apple support emails cost $50 a pop. You'd think they'd respond pronto)"
"Wow, the Apple technical phone support people are the nicest support folks I've ever talked to (geolocation problem isn't fixed yet, though)"
"Been 12 hours and we still haven't heard from Apple regarding the 500 error from their geolocation service. May go entire weekend unfixed."
If my original impression is correct, there is something they could have done: code more defensively, and give precise error messages ("the server is there, but..."). It is a little thing, but it can mean the difference between a deluge and 'just' a large flow of emails.
Notice that, that building the fallback is not building a fallback for the location API but for all the cloud based APIs that the app uses (or atleast the critical ones.) Then there is impedance mismatch between each of these APIs.
Definitely useful to do but sounds like a lot of work.