I understand the angst that this is causing, considering the news from yesterday, but really, who wants their location data sold to some 3rd party for the purpose of ad targeting? Not me! I think this is a good move for consumers, despite the negative impact it may have on some application developers (ad networks).
The location data is a little iffy, but defensible. The real problem is the third-party analytics clause.
Ad companies are, at their core, analytics companies. By understanding your audience, you serve higher-potency ads, which means you can charge more for their placement, and developers have a higher incentive to use them. Companies like Google and AdMob are analytics companies. By understanding an audience, they can serve relevant content (ads). If they can't understand the audience because collection of metrics is prohibited, then their ability to act as an effective ad provider is massively diminished. Ad revenues dive through the floor and advertisers stop using the platform.
Enter iAd. We can provide you with detailed user analytics and possibly even that coveted location data. Thanks to the new iPhone user agreement, we can even tell you what size underwear a user wears, and how many eggs they had for breakfast. We will give you returns on your ads that you have never before dreamed of. Stop using those wimpy ad companies that can't give you an ROI on their blind-targeted ads to save their life. Use iAd and make more money for us.
It's very difficult to interpret this as anything but a move aimed to invalidate other advertising platforms on the iPhone, in order to make room for iAd as the only viable choice.
