Working for a medium size manufacturing plant that wants to get a handle on movement of goods and people, I can tell you that this technology would be a game changer. We can't afford to use RFID and 1m accuracy of Wifi positioning is not worth the hassle. This site says they can get .2m accuracy, no extra infrastructure required, we will be watching this technology very closely. It is a lot easier to stick an iPod touch in someone's pocket than install RFID infrastructure.
I am talking about movement of goods within a single warehouse. We could stick an iPod touch on the bottom of a pallet/box for a couple days. If the tech takes off maybe someone will invent a ruggedized tiny piece of hardware that just has the compass and wifi data transmission built in.
