iPhone Tracker is a new desktop application that allows people to see where their iPhone has logged it’s travels. My iPhone has kept it’s entire travel history, going back to June 2010 when I got my iPhone 4. iPhone Tracker uses the data from your iPhone backups in iTunes.
It’s a little buggy, but still an interesting way to see your travels.
iPhone Tracker is can be downloaded for Mac and Windows.
It appears that the iPhones (like other phones) keep this data to provide GPS applications with your last location and make it easier to quickly attain your current location. If you want to protect your iTunes backup from divulging this information, go to your iPhone Summary page in iTunes and check off Encrypt iPhone backup.