Earlier quoted context omitted.
This entire thing is in the FAQ. http://petewarden.github.com/iPhoneTracker/#9
The FAQ has nothing to do with it. Nobody is contesting that cell tower location information is being used. The differing claim is this: the O'Reilly researchers claim that the co-ordinates logged are those of the device itself and these co-ordinates are possibly calculated using cell tower triangulation, while this blog post claims that the co-ordinates logged are those of the cell towers themselves rather than the…
Until your location can be triangulated by enough towers, your location is a tower.
Also, they're not O'Reilly researchers - one is an astrophysicist from Exeter and the other's a developer from Color.