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is! Scoble, you will expose the ugliness!
Navizon, for example, can do true-background updating, but the phone must be jailbroken to do it.
Basically, it creates a fake email account in your phone. When your phone checks this email account, it gives their servers information, like your IP address. They can use that for a general location fix, or they can use Push to talk back to their app and have it send them updated location info.