How does the iPhone learn new WiFi locations in terms of using them for location estimates

Question

I know the iPhone can and does use WiFi proximity to get approximate location. This obviously only can occur when some database in the sky knows the approximate location of that

Answer 1

The iPhone uses Skyhook Wireless for determining WiFi location. You can submit your information using their submission page.

EDIT:

Apparently this is no longer true. Apple seems to aggregate this data from iOS devices directly now. See the comments.