The reason why is that Qualcomm and most 3G chip manufacturers bundle GPS, as it is required by federal law for 911 service.  Just adding a standalone GPS module to the Wifi version would probably cost about as much as adding a 3G chip.<p>Btw, does anyone else find it striking how much patent licensing adds to the cost of a device?  I'm pretty sure Apple is passing the $130 3G upgrade along at almost cost.  These 3G chips have been out for years now and probably only cost about $10-20 to manufacture, yet every 3G cellphone manufacturer gets raped by patent licensing costs to the tune of $100+.