I'm actually interested to see the hard facts on this concerning the iphone. When I pull up my location services on my phone it claims to list all of the applications that have requested my location in the past 24 hrs and pandora is not listed. I always thought the geographic data was pulled from my profile, mostly because all my ads are based on Chicago products, though I haven't lived there in 10 years. And yes, lets be honest, why would I my actual information in my profile?
When signing in Pandora states that "Pandora may use your device model, ID and system version to personalize listening and advertising". Nope, nothing about geography...