That seems to be the case, check out the details that crossed the wires yesterday:

Starting on Tuesday, when Sprint Nextel customers use the search bar in their phone browsers, the results will automatically incorporate the users' location. Some customers will also be able to use voice commands to conduct searches.
The capabilities are an extension of a relationship that Microsoft and Sprint formed late last year that initially involved including Microsoft's Live Search in the browser on Sprint phones.

Read: Yahoo! News

I ignored this story initially because the handsets mentioned were bland feature phones. Then DrDoom pointed out that there's no reason LBS can't work on devices like the Mogul very very soon. Seems like a no-brainer that it should be built into Live Search.

I hate gpsOne not because it's inaccurate, but because it's so often locked down just because the carriers haven't figured out a good way to use it to bilk us out of more money. So this news is actually good news. As DrDoom said: "Because even if its only using the towers, SOMETHING is better than NOTHING for LBS." You damn skippy.

Update: Malatesta smacks me down in the comments -- and rightly so. It's not gpsOne/aGPS, it's just tower triangulation. Although that would still be SOMETHING, as stated above, it's not ANYTHING yet for Windows Mobile. In point of fact, Malatesta doubts it ever will be. Grumble grumble.