Apple, iPhone Developers, and Location-Based Ads

Apple says that iPhone developers should not use Core Location, the API that provides an iPhone user’s location, just to provide location-targeted ads. Ed Parsons and GPS Review have what I think is the correct take on this: if you’re going to tap into Core Location (which drains battery life, requires user approval and reveals personal information), for God’s sake make it for something more than just local advertising (which I presume is still allowed, just secondarily). Apple may be getting into mobile advertising, but I don’t think preemptively stomping on the potential competition in the mobile ad space is what’s behind this (pace MacNN, ReadWriteWeb and others).