NOel, I think you hit the nail on the head. You'd have less battery drain if you used an external receiver, and you'd theoretically have better accuracy. But you'd also have to carry an extra little device. And if you're happy with the iPhone and no extra receiver, and battery drain hasn't been a problem, why bother? If you do go the external gps route, you will have to get one of those receivers that Apple has approved, such as the two that Cara mentioned.
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