I was convinced there was nothing to worry about tracking until i stumble on the following link which i read and worried about. http://www.maclife.com/article/howtos/how_secure_and_remove_your_ios_4_tracking_data
Reading through this thread and the hilarious comments of some experienced users has convinced me that I was right. There is nothing to worry about. Tracking is like nuclear energy - it can be used positively and negatively. So if Steve Job decides to know where I am, where I have been, why not?