Just adding my 2 cents to the debate on the cause of the no sleep issue.
I have found that I had the no sleep issue after some time, regardless off whether google location, or even wireless location was one.
And sometimes regardless of rebooting too.
One thing that seemed rather constant though, was that it appeared after charging, and since I only recently switched on the setting "stay awake" (that allows your phone to not sleep while it is charging) I have wondered if it was not a bug linked to it staying awake despite unplugging afterwards...
I have now switched off "stay awake", will tell you in a few days if I get the problem again.
That being said, I really like 1.6, when I am not having the no sleep issue, I am having the longest battery life I have ever had (48h with background data and auto-sync enabled, but no 3g).
And finally having that dialpad during call working correctly is heaven sent.
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