Apparently you missed it:
If you're gonna bash, that's fine. Even the moderators here are getting in on the bashing (which quite frankly, is embarrassing for this forum). But at least get the argument straight.
I was asking what they could possibly do with the information, and nathris cleared it up. Besides, if you literally pick apart that statement from Apple that you quoted, it's actually quite specific to their "iAds" system, and Apple very nicely side-steps what they do with the location info, and there's no mention that the location info they store that's in question has anything to do with their iAds system.