You completely missed my point... if you don't want to have these things don't use it. Nobody is forcing people to use this phone just like nobody is forcing them to use Facebook. These companies, which are companies, sell you a service in which you pay a monthly fee to continue service. Who cares if it's retroactive? It's a service and service and privacy agreements get updated *all the time*. You pay for that service.
If AT&T tomorrow doubled its rates I would probably dump AT&T and sell my phone. Likewise, if you don't like the change, dump the phone and move on. I'm not trying to be a douche, but what promise was made to you or anybody else that these things would never change? Their previous agreement allowed them the ability to legally update it. I understand being upset but I was responding to opt-in and opt-out, and it's pretty simple - your dollars are your vote for you and how serious you are.
The last thing I want to see is a bunch of people up in arms saying we need laws to prevent this. I call BS on that. Nobody is forcing you to have a smartphone. Nobody is forcing you to use location services. And certainly, nobody is forcing you to have an iPhone. It's simple, and while that may sound brutal, that's the benefit of your ability to choose.
Also I disagree with your "rendering their devices useless" point. C'mon - not using location based services doesn't render the phone useless.