That would be awesome. My Garmin hand held GPS does that and would be a welcome addition to the Android.
I go camping and riding, and a thing we like to do is ride out to some remote area and bury a bottle of booze. Mark the coordinates, then come back on another trip and dig it up and drink it . -- I guess that is some form of Geo caching
On further investigation, the Eye-fi uses "Wi-Fi Positioning System from Skyhook Wireless, or WPS, for geotagging purposes." Since the pictures I would want geo-tagged are usually out in the boonies, this wouldn't do me any good. I'll just stick with my original, cludgy idea using the Pinpoint app and manually tagging.