Is the GPS on cell phones satellite based, or is it only useful in places with cell phone coverage?

Also, why is there any push for a small phone that is a good phone without the other crap? I am sure that the quality of the cell phone part of the phone could be increased dramatically by eliminating everything else that I don't use. I don't want a one thing does everything device, I want a small phone with good battery life.

Also, since I am hijacking, I will do it all the way... I use an ear bud to keep the RF from the cell phone away from my head (probably paranoid, but it is easy to do), but I am curious as to why people would want a wireless communicator constantly plastered to their head. I realize that blue tooth is lower energy than a cell phone, but between potential risk and another battery to change, why do people buy into blue tooth? I know there is the cool factor, but is there any real advantage?