GPS function for iPhone?

Does anyone know if there are any plans to enable iPhone for GPS?
Also, I am new to Apple OSX. What are widgets? I gather they are mini apps. I see that there is a GPS widget on the Apple site here http://www.apple.com/downloads/dashboard/status/livegpstracking.html
How do you download a widget to iPhone? And when you do, does it add an additional icon to your touch screen?
Thanks for any help on this.
Velocity Micro ProMagix PCX Windows XP Pro

This is a feature that would really make the iPhone wonderful. I do already own a Garmin GPS and love it - the downside is the large bulk that it adds (it's almost like a (miniature) CRT: http://images.amazon.com/images/P/B000A5TAT2.01.SCLZZZZZZZ.jpg )
I love it but find the bulk prevents me from taking it on the go unless I know I'm going to need it ahead of time.
Being able to just pull out the iphone for the same functionality would be perfect. I love the google-maps views and think it would be perfect on a GPS (especially with the traffic/(updated) local search/satellite maps and now the ability to re-route your trip by dragging your cursor). If they added voice (text to speech) it would be perfect.
It would likely be done through Bluetooth - I know SONY has a bluetooth accessory for their UMPC that does just that. The GPS receiver is also quite inexpensive (I've seen them for $100-130). I wouldnt have a problem spending $50 more or so on the software either (and with Google maps built in, it shouldnt be too tough).

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