I can't watch that vid atm as I don't have speakers at work. Looks like they were talking about the blue dot which is the "my location" button. As far as I know, the only thing that does on my phone is show me where I am (If I was panning around for instance, I tap that button and it snaps the map back to my current location).
The way I understand the function of the GPS on a cell phone is the GPS will show you were you are but needs and active cell line connection to actually download the part of the map you are currently in. You move around and the phone will use the cell line to continuously download and update that part of the map. Unlike a dedicated GPS device that likely has all of North America already installed on it.
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