vznav requires data and cell coverage, but it wasn't a "fake" gps. it still provided the same accuracy in the location as any other gps unit or the droid. it was not just using the aGPS, otherwise, others have said, you would only be within miles of your location, not just a few meters.
It depends upon the phone. But, for the
vast majority of Verizon phones, aGPS is all there is.
"The FCC Phase II location accuracy standard for network-based technologies is 100 meters for 67 percent of calls and 300 meters for 95 percent of the calls." - that's aGPS, and referring to that as "within miles of your location," while correct, is very misleading.
That's not even close to what standalone GPS can do, which is more on the order of 15 meters, or 6x better.
I just fired up Google maps, with GPS turned off. It claims to know my location "Accurate to 70 meters," but it's probably 200 meters off. When I turn GPS on, it says "Accurate to 20 meters," and it's off by about 5.
VzNav no doubt works as most current auto navigation GPSs (e.g. Garmin, Tom Tom, etc.) do, by locking you onto a road, and assuming that you're on the roads which it is giving you instructions to follow. I suspect that it's much worse than those, however, at really knowing whether you're driving on the freeway or on a parallel access road.