SANTA BARBARA, CALIF. -- Google rolled out automatic local search for mobile phones called "Search with My Location." When you search for "pizza," you get restaurants near your current location first. The service only works on some phones, and does raise privacy issues, but it's a real step toward a location-aware future.
Google figures out your location by either cell-ID (it knows the location of the cell phone tower you're using, and figures out where you are from that information), or GPS -- depending on the phone. It works only with Internet Explorer Mobile for Windows Mobile devices that support cell-ID or GPS. Here's the list of compatible phones.
Google also claims to be working with a smattering of handset manufacturers to build in the capability to support this kind of location awarenes.
So we can look forward to the convenience and power of location-awareness -- and the controversy of Google always knowing where you are.