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We've been waiting quite a while for a standard geolocation system that is integrated into browsers, this looks as though it could be the one.
It looks as though Firefox 3.1 will ship with this as standard and use the W3C Geolocation API Specification [dev.w3.org].
There are privacy issues about Geolocation, and those seem to be being considered, so let's hope that this (or something close to it soon, together with a static PC solution) makes it into all browsers. Users will then be able to set the level of detail they give out to suit applications, the default will probably be fine for most local stuff but walking distance stuff will probably need the user to allow sites that level of detail.
The level of privacy that one can maintain on the Internet has always been tenuous at best, but this may bring the issue to the fore once again. I agree that a recognized standard for developers would be a good thing, but the privacy issue with the public is going to make this problematic.