iOS 4.3.3/4.2.8 Updates Available Now
"Apple released iOS 4.3.3 (and iOS 4.2.8 for Verizon iPhones) Wednesday, which brings changes in the way location information is stored and backed up, as well as a number of other fixes and improvements." 
This update fixes the location database, reducing the size of the cache, stops the backup being done to iTunes, and deletes the cache completely when you turn off Location Services. You can get the direct downlinks from OS X Daily, or just use the software update feature. There are also some battery life improvements in 4.3.3 for good measure.
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