I hope this episode ends with Apple pushing an update to truncate and encrypt the file and people get over the fact that location services by definition use location data.
Seems to me that Apple is caught in a cleft stick--- on the one hand, the fan-boys don't see a problem and on the other hand the rest will not be reassured by anything Apple is likely to do. As for the general public, their lack of technological discrimination is more likely to result in a chicken little 'oh privacy; the sky is falling' effect than anything else.
