I am not an expert on the inner-workings of these devices, but if you skim this thread over at Modeco:
http://www.modaco.com/content/i9x0-o...lease-help-us/
They have 'confirmed' the GPS is there, and can be utilized. To the best of my knowledge VZNav is a GPS app.
That is what I have to go on, and to the best of my knowledge VZW has never denied the GPS chip being there, it is just how it is accessed that is different than other GPS devices.