In reply to hwackerhage: I would 100% agree with you. At work we have invested in the Airo A25. A PDA with military accurate GPS and memory map built in. The accuracy is incredible. I trialled this while out with an ML training group a couple of months ago, and the unit could easily find micronav points at ML level. Since then I have tried it all around the country in various crap conditions and the accuracy is perfect everytime. Carrying plenty of batteries, and with the backup of a map and compass incase I think next generation GPS sets are the way forward. Obviously carrying a map and compass and knowledge of how to use it is always essential, as no one can predict something like dropping the unit off a ridge. However with Units the Garmin Oregon, Satmap active 10 and various rugged PDA units with GPS and memory map coming into the market, I think we are more and more moving towards becoming more reliant on GPS handsets for navigation. As someone has already pointed out, if its good enough for the military and what they do, its good enough for us.
However, I believe that a sound knowledge of navigation should be a pre-requisit for using a GPS set. My reasoning for this is that there may come a point where for some reason technology may fail you (batteries, environment, cracked screen etc), and an absence of map and compass and the knowledge to use them could well lead to a serious problem. For example I teach a lot of DofE students, and I would never allow them to use a GPS handset alone, firstly because it ruins the spirit of DofE to some extent, and secondly because if I gave them a GPS they would not be relying on the map skills that I believe are so important.
I think the OP makes a good point that not everyone can afford/use a GPS, however I think they will become increasingly prevailant in the outdoors as time goes on, especially with GPS now becoming increasingly available on phones, however it should be noted that the accuracy on the majority of phones is not sufficiently accurate to navigate safely in poor conditions, and it is this that I see becoming a problem with novice hill walkings thinking (wrongly) that a GPS is a magical device that will keep them safe. "Pathfinder" software featuring vector mapping and OS mapping is now becoming available on mobiles, I hope that people using this are made aware that GPS on phones can often drop to an accuracy of 10m+ which in poor weather could be the difference between safety and a steep drop!