Actually, you are wrong. Intel is currently working on this WiFi technology to replace GPS in built up areas, its called Precision Location Technology (PLT). The satellite signals needed to triangulate in GPS systems are often blocked by tall buildings, whereas WiFi signals aren't so PLT doesn't suffer from this. Another advantage of the technology is that not only does it give lat and long coordinates, it also gives altitude which is ideal for multi story buildings (you can tell what floor a person is on). I dont have the exact figures for how accurate it is, and obviously it depends on the quality of the signal (as with GPS), but they are blowing it up to be the next big thing in WiFi security because it can supposedly tell if a networked device is inside or outside a given wall, thats a few centimeters... Intel will be submitting this technology to the IEEE's 802.11 standard, so it will be commercially available in the near future I suppose. Already a Finnish company Ekahau have a system commercially available using only todays 802.11 technology that gets an average indoor accuracy of 1m.
About moving around... well, he can still be found. Infact, it would probably be easier to cath a moving target like that! The system works in real time, you get a flashing dot on a 3D map that indicates his location. Ever tried hacking the Pentagon and driving around at the same time?
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