Sometimes, Apple's decisions about content in the App Store can be petty and anti-competitive -- like asking developers to remove any mention of Android. But sometimes, they make a call that seems to put users first. This time, it's a request that developers use your location to provide useful information, rather than just serving you location-based ads. Here's the text of the warning to developers, posted in Apple's developer forum:
If you build your application with features based on a user's location, make sure these features provide beneficial information. If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user's location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store.'
Developers might balk at the removal of a possible cheap and easy revenue stream, but I think Apple is doing the right thing, here. Apps like Foursquare and Gowalla, which allow business to advertise specials, should be unaffected, because they also your location for checking in, finding your friends, and other important game elements.