Locationgate was a good wake-up call for consumers who weren't aware that smartphones were accessing their locations for various reasons. Apple rolled out an OS update that took care of the location cache the iPhone was storing, and assured users that it was never accessing users' locations; the location was being stored only to improve the user experience.
Whether you believe that or not, Apple has stepped up its effort to help ease consumer fear concerning location information. In iOS 5, users can now decide whether or not to allow system service access to their location.
To access the new settings go to Settings->Location Services->System Services. Here you can turn each service on or off, based on your preference.
Watch the video for a full rundown of the new location settings.