I had done a recovery 10 days ago, so I just restored that. When I did, things were back to normal with the GPS icon. I have no idea if another app was acting up with it or not. I have to admit I have quite a lot of location based apps installed so I decided it would be easier to do the recovery and see what happens first instead of trying to single out which app (if any) were acting up.
I didn't know GPS and "use wireless networks" worked hand in hand like that. I was trying to disable "use wireless networks" to see if there was a way for Latitude to utilize it instead. But it seems pretty apparent that Latitude ONLY uses GPS when foregrounded, and when backgrounded, uses "use wireless networks" for determining estimated location.
I just think it's funny how it works. I looked at my timestamp history from last night. I drove all day (almost 14 hours straight) yesterday so from 11pm until 11am I was dead asleep. Yet my Latitude updated a few times, here and there putting me in a location far enough away that I was not within the blue circle of the estimated range it thought I was in.
Granted, I have to admit, this kind of technology is pretty remarkable it's even this accurate, to be honest. I mean, using NO GPS and finding me within a few miles... However, to give it credit, during the same minute it updated me again, putting me further south to where I WAS within the blue circle. So while it threw me out of left field, it also brought me back relatively quickly.
So I have to give it credit. While it's not pinpointed accurate, I see how incredibly useful it is. I just wish Latitude was a little more configurable so I can get the GPS involved a bit more (every few minutes, maybe?). I can see some questions popping up if a couple uses this to track one another. But then again, since it's using rough estimates, if that's known up front perhaps it wouldn't raise any awkward questions.
Do any other platforms use this "use wireless networks" technology? Or is this something Android based phones only do?
Also, how does it use your wifi? Does it somehow pinpoint the location of the wifi based on where its feed is from with the ISP?
EDIT - so I decided to tinker around with Latitude again and to my surprise, it said I was on Long Island in New York. The only difference was I had my wifi enabled this time whereas before I did not have wifi enabled. So it seems the "use wireless networks" option with mobile towers works relatively well. Using WIFI is nothing short of a bad joke. I just re-enabled my wifi and sure enough, I'm in New York. Nice.