“Wondering why your iPhone and 3G-enabled iPad are storing your general location in an easily accessible database on your PC? It’s simple. Apple uses this information to build a cell tower and Wi-Fi access point location database, and the company admitted as much last year.
The only troubling thing, however, is that Apple said in the letter that it encrypts your location data before sending it back to company servers. But the database on your computer is sitting there unencrypted in an easily discoverable location. This means the database is a potential target for malware or even law enforcement if the authorities should decide to seize and search your PC. Apple will need to do a better job of protecting this data in future iOS updates now that its existence has been well publicized.”
From PC World