Apple has bowed to media pressure on its location tracking privacy issues, releasing an iPhone operating system update today (iOS 4.3.3) which has 3 changes to the operating system's "crowd-sourced location database cache" (aka the consolidated.db file).

Apple says this update reduces the size of the cache, ensures that the cache is no longer backed up to iTunes when you connect to a PC, and deletes the cache when iOS location services are turned off. One thing this update doesn't do, however, is encrypt that file.