Exactly. The SoC does have integrated GPS functionality, but Sammy chose not to use it. In fact, as you probably know, it's been rumored since the i9100 launched that the brand new SirFStar IV chip was in the Galaxy S2. I'm sure the SoC solution worked, but seeing as "gps issues" was probably one of the biggest complaints against the old Galaxy S, and in such a thin phone there isn't tons of extra space to put a huge antenna, they probably wanted to put the best GPS chip in that they could find!
The GS2 will never rival the reception of a dedicated GPS unit with a big ol' ceramic patch antenna, but it should work about as well as is possible with such a small antenna. At least, that's the hope.
PS,
this is supposedly the GPS chip in the GS2. Which interestingly enough actually contains it's own 109 MHz ARM7 CPU. Normally GPS is handled by a combination of the baseband and the SoC, so it's gonna be interesting to see what sort of tweaks and upgrades will be available in the future by virtue of having a dedicated GPS chip.
And non sequitur for those interested, that means there's an ARM core in the baseband, another in the GPS, and 2 in the SoC. Quite a few cores for a tiny little device...
