The first two points can be read here:
1. Why is Apple tracking the location of my iPhone?
Apple is not tracking the location of your iPhone. Apple has never done so and has no plans to ever do so.
2. Then why is everyone so concerned about this?
Providing mobile users with fast and accurate location information while preserving their security and privacy has raised some very complex technical issues which are hard to communicate in a soundbite. Users are confused, partly because the creators of this new technology (including Apple) have not provided enough education about these issues to date.
Time will tell if this necessary step in public relations eases the pressure on Apple (and Google) and clears up potential misconceptions held by the public and elected officials.
Stay tuned for more news and analysis on this issue in the days and weeks ahead.