I agree. it seems like the two systems could work together in one device, with the WiFi picking up the slack when you were in a city and the GPS was crapping out.
I don't see it replacing GPS by any means (at least not in the current form), because it requires that the exact locations of access points be known, so it would only work in cities that were mapped, and also would have problems if somebody moved their access point around.
however, one use that seems like a big advantage would be tight navigation in city areas... where GPS might not be accurate enough to know exactly what street you're on if they are really close together... or say you're on foot, in the middle of a city, and you're looking for some particular store or restaurant... with GPS, you might not even get a signal at all, let alone a good enough one to give you enough accuracy.
also, it seems like it might be helpful in huge airports (or malls) or whatever, where you can probably get a wifi signal but not GPS, and you're in a hurry and trying to figure out where your next terminal is. now all they need to do is get every person to carry a PDA with tracking on it, and you could walk around any place without ever taking your eyes off the screen... it would just keep track of where everyone else was so you wouldn't run into anyone
as for car navigation... well it would probably improve street-level navigation in big cities where GPS signal quality is poor or nonexistent... but that's probably about the only time you'd benefit. especially those of us who live in places like maine, where they probably wouldn't even come to map the cities
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