Mashable and Consumerist are reporting that evil Apple is tracking your every move just because you are coerced into agreeing to the new iTMS terms.
First off if these journalists actually did their work they'd realize that Apple has an opt-out page right on the agreement itself that allows you to opt out.
Secondly, Location Services are required for things like the GPS to work. When Location Services are in use, you will see an arrow cursor on the top right of the screen. You can disable Location Services by going to Settings>General>Location Services. If you're really paranoid, then switch the device to Airplane Mode, in which case there will be no network connectivity of any sort.
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