location accuracy is improved when wi-fi is turned on?

Hi sajuthomasst,

Thanks for using Apple Support Communities.

In rare instances, the setting to turn on Wi-Fi on your iPhone, iPad, or iPod touch may appear "grayed out" or dim. If this occurs, you will not be able to turn Wi-Fi on. You may see the following:

iOS: Wi-Fi settings grayed out or dim

http://support.apple.com/kb/ts1559

Hope this helps,

Mario

So you have reset your network settings? Restored the phone as new using iTunes?

Downgrading is not supported. When you say you restored the phone, did you restore it as new? Not from your back up.