Here is a little trick to allow you to use a GPS feed with Google Maps on your iPhone.
The Google Maps app on the iPhone is similar to the Google Maps for Mobile. A while back I discovered that you would input a URL for a KML feed into Google Maps mobile so when I got my iPhone I gave it a try on there too AND IT WORKED!
Simply type in the URL for a KML feed into the search box on the Google Maps app on your iPhone.
So how do we get our current GPS cords into the iPhone? You use a separate device like the Motorola i415 that you can pick up at Walmart for ~ $30 and load up the mologogo.com application on it. The phone can then transmit your coordinates to a web server where you can generate a KML feed for your iPhone.
You can find sample scripts on how to build the KML feed here: http://mologogo.wikispaces.com/
Here is the feed for mine: http://gps.jasongarland.com/earth1.kml
Type it into the search box on your iPhone and you will see my current location. (Assuming I have the Mologogo app running)
NO STALKERS PLEASE! This means don't attempt to go to any of the locations on this map to try and find me. If you want to talk to me you can send me a message on this blog.