Well, now we'll see if this is true, because Google has launched a new Mobile Maps application called Latitude, which lets you share your location with your friends and see where (approximately) they are.
This approach makes Latitude a very interesting application. I can imagine some users simply setting their location to always be visible to everyone; others might want to spin a complex web of deceit which will ultimately make their life miserable. It's like a game; you can choose how interesting you want it to be.
For a list of supported phones, check here. Believe it or not, the iPhone and iPod Touch are in the "coming soon" category, which is a big minus for Google. You can also visit google.com/latitude on your desktop and install the Latitude iGoogle gadget, which lets you share your location from your desktop computer.
As far as supported countries go, currently there are 27 of them, and mine (Croatia) unfortunately isn't one of them; Google promises to add support for more countries soon.
Check out Google's introductory video below: