I understand why they don't offer it, what's frustrating to me is that I'm a semi tech-savvy guy, and I went through the entire ordering process without realizing the GPS isn't there. It's obvious on the Internet, now that I'm looking for it, but it wasn't obvious to me when going through the Apple site to order. Maybe I just missed it somewhere.
I remember when I got my first iPad -- the iPad 2 -- only to be surprised that it didn't contain the GPS chip. Most Android tablets do. I would not feel bad about this....how could you have known? Many have come to the same realization after buying the wifi only iPad.
I must agree with that other poster...the best solution is the cellular iPad. It is just so much cleaner and simpler. Your parents will appreciate that.