Lot of apps. do need an Internet connection.

For instance, a lot of Wifi finder apps.

Reason is, they store the data and the database on their web sites and the apps. just connect and retrieve that data to the Ipod Touch or iPhone.

That is how Google Maps works and that is why GPS Turn-by-turn apps. like TomTom charge $100 because you have to download the maps to the iPhone and store it locally.

Lot of location-aware apps. need Internet connections too, which make them useless if you don't have a mobile data connection or you don't want to pay for data roaming overseas.

Maybe since Google now owns their own maps instead of licensing the from Navteq or TeleAtlas, they will give you the option of downloading the maps instead of streaming them.