It does seem that all over global HTC users are having this, both myself and my girlfriend here in the UK both had the issues...and its ALL HTC handsets not just desire..
It seems to be localised to the GPS location server for the weather updates rather than the main weather server, as if you manually find your town it will show correctly (assuming that your town showed correctly in the first place as some arent covered)..
Last night it seemed like it was the "no weather, no animation, but correct town" problem, now im getting it not update my current position of my city but to about 20 miles down the road...which leads me to believe they are having slight issues again and are sorting it out..