According to the Consumerist and eWeek there is now no way to opt out of privacy of location.
Here’s what you agree to in the new Terms at the AppStore which say;
Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device… For example, we may share geographic location with application providers when you opt in to their location services.
As this reads to me and has been pointed out elsewhere, you always get asked to opt in when you touch location services, and you can always turn it off globally in the Location Services Setting.

Creepy? Hardly.
Oh, and if you want to opt-out of personal information gathering in iAd?
Go to http://oo.apple.com
Should users have to opt out though? Shouldn’t they rather have the option to opt-in?
Matt,
Always my preference to ‘opt-in’. So agree with you there. But as someone who deals with legal agreements with regards to products, this appears to me more of a ‘catch-all’ to allow the developers of Applications to get info IF those developers build location service into their app. To make it less of a hoo-haa, I would have disabled Location by default in iOS. I imagine the vast majority of users would be frustrated by that and turn it on anyway.