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I did a few calculations.

Given 1 GPS Update every 2 seconds:

At 60 mph you are moving at 88ft/sec.
So that equates to a 1 GPS update every 186ft.
That's about every other house AT 60mph !!!
That's plenty often.

At 30 mph you would get 1 update for each house.

You walk at approx 3 mph (that's fast).
That equates to 4.4 ft /sec
So that equates to a 1 GPS update every 8.8 ft.

So 1 update every 2 seconds is plenty enough for Walking, GeoCacheing or Car Navigation.

One thing folks might be seeing is with more screen you can see a lot more references as you move and if you zoom in a lot and drive, say 30mph, yes the screen will jump about 88ft every GPS update. Some applications may poll more often or do their own interpolation. But for normal use TP2 is the same as prior phones and is fine.