I think the GPS receiver comes "for free" with the phone hardware (the DSP/antenna package).

So, I doubt it, just because it wouldn't add much and would cost significantly more (both in components and battery life).

With this kind of device, you're only online when in wifi, so location-aware services are limited too. i.e. what would you do with the GPS info? Maybe photo tagging?

I make Gaia GPS, so I care about people being able to locate themselves on a downloaded map, while offline.

GPS receivers are getting absurdly cheap, and I believe there are GPS/gyro or GPS/accelerometer combos that are even cheaper.

I think it is really all about the batter life.

> what would you do with the GPS info?

Using any offline navigator.

Perhaps it isn't worth it?

iPod doesn't have 3G, so it's offline outside WiFi range. This means you're either close to WiFi and WiFi-based location works, or you couldn't do much with it anyway.

Download the map to the iPod and use GPS to figure out where you are seems a viable solution to me.