Apple has just released their iOS 4.3.3 update to the masses. The update does offer a fix for the location “tracking” issue, and presumable offers other slight tweaks and bug fixes, although this is not explicitly mentioned.
iOS 4.3.3 improves the way iPhones and iPads handle the location tracking database stored on-device by making is smaller and encrypted. The location database will be no longer backed up to iTunes and it will be deleted entirely when Location Services are turned off.
Here are the direct links for iOS 4.3.3 (courtesy of MacStories).
Apple also released iOS 4.2.8 for the Verizon iPhone. You can download it here.