I’d say so, based on this tiny new receiver chip:
http://www.ohgizmo.com/2006/01/23/worlds-smallest-gps-unit/
http://www.rakon.com/whatsnew/display?article_id=-80&template=news
My uninformed prediction is that we’ll migrate from self-contained receivers to miniscule receiver modules that communicate with the device of your choice, including wrist-mounted displays, ipods, digicams and cellphones. You can actually do a variation of this today:

