Yes, definitely worth the extra 16 quid. Like you, I didn't think the GPS was that big a deal and I primarily bought mine for the AVCHD movie mode and better LCD (Having been previously spoilt by a well used TZ7). But if you use Picassa online it's a really neat feature to see your picture locations pinned to Google maps
The local points of interest that scroll along the bottom of the screen though (you can disable them) are a total waste of screen real estate
Honestly, now I've got used to the GPS tagging feature, if I were considering a future camera update and the camera I fancied didn't have GPS tagging, it'd probably be a deal breaker
I disabled the GPS as soon as I got the camera. TBH, I can't see me using it... after all, I don't travel that much that I forget where I've been! I suppose it would be useful if on a continental tour or something like that, but for someone that just heads to Spain or Portugal for a week, it's no big shakes for me. One thing that I do notice though, is that the battery life is pretty poor compared to my old TZ6 (even with the GPS turned off). I suppose the higher res screen accounts for most of that, but it has surprised me.
Besides disabling the GPS, turning off the 'Pre-focus' will extend the battery life even more, by default it's set to continual focus.
IOW the focus motor is continally trying to maintain focus, which you don't need unless in video mode, and continual focusing is always on in video mode anyway (cannot be disabled) Probably extent the life of the focusing motor too.
Just turn it off, and obtain focus by pressing the shutter button halfway as normal. Really improves battery life much more.
I've never really noticed any battery life issues. Although if you switch the gps to airplane mode, it only activates when the camera is switched on and deactivates when the camera is switched off. But as i say, i haven't noticed any issues myself.