I think the reaction was appropriate. It confirms the major points that people were upset about: 1) that the data is stored unencrypted, 2) that it lives even after you turn off location services, 3) that it was taken without explicit permission.
This press release doesn't change any of those points, it merely places the blame on bugs (which wouldn't have been patched had the story not been uncovered).
Isn't this comparable to the Google/Buzz fiasco, which was met with similar (deserved) scorn?
which wouldn't have been patched had the story not been uncovered
That's a pretty cynical reaction. Why would you make that assumption? Do you think that if someone had alerted Apple privately to the bug they never would have gotten around to fixing it?
I think there wouldn't be the same sense of urgency. I don't think that's cynical at all; that's the way business works. I've never worked at a company that doesn't push something when enough customers make a fuss about it.
This press release doesn't change any of those points, it merely places the blame on bugs (which wouldn't have been patched had the story not been uncovered).
Isn't this comparable to the Google/Buzz fiasco, which was met with similar (deserved) scorn?