Internet connection is needed to display the map, not to get the GPS signal. If all the map are preloaded then there would be no space left for your media or app. We can bypass this by using offline maps provided the phone is jailbroken.

iPhones are meant to be coupled with a data plan, so if YOUR phone don't have a data plan then it's only YOUR phone that sarks, not the iPhone in general. Want a better GPS device, go get yourself a garmin instead of a phone. Sheesh.

@Ryan
I beg to differ dear ryan.

1st
Did I say YOU DO NOT HAVE a data plan? I said in GENERAL that the iPhone is INTENDED to be with a data plan. And if your (as in general and not referring to you dear Ryan) iPhone does not have data plan then only your (again not referring to you dear sir) iPhone sarks. Do not generalize the iPhone that sarks. BTW my first comment before was not even meant to you.

2nd
It is YOU thats not well verse with the technology behind iPhone. FYI ... iPhone is using A-GPS (Assisted GPS) which is better that GPS alone. It uses GPS and cell tower triangulation for better positioning. If GPS signal is lost then you still have cell tower as a backup. One thing you are correct, GPS system does not involve internet. What you do not get is that the internet connection is use to display the map in Google map, not in finding the coordinate. Please get your facts right. Thats why I said if you have a jailbroken phone then you can utilize the offline map where you do not need any internet/3G connection.

3rd
iPhone were never advertised as a dedicated device for turn to turn navigation. It's sooo typical of people that thinks when a device have GPS then it must have that features. GPS means Global Positioning System, a system to determine where you are. Not a system to give you directions. Those are an add on service to GPS thru software, not the GPS system itself. Now camera have GPS system built in, so they can give you direction where to go?

If Apple or Google decide to give the turn by turn features, they can always do that by software upgrade. The facilities are already there to begin with. And in the future, even company that develope GPS device like TomTom are planning to roll out software for iPhone to enable the features. Please please please dear Ryan ... get your fact straight. iPhone was never meant to be like the OTHER GPS system that you might have wish when it was launch last time. It does have the ability to do so.

Also please read my last comment, maybe you were blinded by rage that you missed it.
p/s - If and ONLY if I get lost, I'll use the thing that god gave me, my brain, so i can ask directions.    Malu bertanya sesat jalan.

You need the internet to get the ROUTE. of course when no internet how to get the route.GPS in iphone is just merly and addition for you, just incase to find where u are.

as froze said, if you are hardcore traveler, a car gps is the thing for you not the phone gps.