It's true. The reason for this feature is so you can go back and plot on a map where pics were taken. You should be able to turn off locations services for apps that request location services. This is how it work with my iPhone 4 and my previous iPhone 3G. Alot of the apps I have on my iPhone will ask to use locations services including the photo app buts it's easy to turn off so it does not record you location. I'm not sure about other smartphones but thats how it works with the iPhone.