I put in some feedback on the Apple Feedback link kindly provided earlier, but of course I don't expect to be contacted about it. When I have some free time, I will contact my provider Vodafone as well.
The bizarre thing is when I'm at work, the location services is spot on with wifi and 3g, it picks my location perfectly - but when I'm at home, it defaults back to Lubiana, Slovenia on wifi ... hmm must check 3g, can't recall if I have or not I was so wild about it last night lol.
You would think that with so many people complaining about this issue since the beginning of last MONTH that Apple would have made some kind of announcement! Location services ... pretty important to using integral iPhone apps don't ya think?
I'm guessing this is a big issue for them and they are keeping quiet about it for now 😎