I have offered gps solutions for iPhone/Apple (Skyhook) better, faster, more efficient algorithms for AGPS .
size is not an issue - what is a size of aGPS chip in N810, iPhone ? have you done size comparison ?
price is not an issue - Sirf III chip $10 a piece (wholesale price much lower) <snip> battery life is not an issue - you can still offer 2 models , one with full GPS and one aGPSed.
Think twice. aGPS was offered for non-gps enabled iPhone by Skyhook as add-on, not mainstream gps solution. The idea was great and it worked as it worked.
Today Apple released gps enabled iPhone and still not full GPS (Sirf III).
None of the above listed issues by you is valid.
To me aGPS is still 3-wheel + 1 leg solution for car industry.
just visit GPS semantic www pages at http://www.tinyurl.com/iDarius