I love the 1.7 & 1.7.1 updates. I never tag photos though, so I can't speak to that working or not.
As far as people who aren't getting push notifications...have you ever tried this fix?
http://forums.androidcentral.com/android-applications/109343-facebook-push-notifications-solved.html
It worked like a charm for me. All I did was log into the Facebook app on my brother's Blackberry & post a status update onto my wall. I have been getting INSTANT push notifications ever since. Apparently having permissions for "Facebook for Blackberry" on your account solves the problem (it did for me at least) because I NEVER got a single notice pushed to my Droid X before I tried the fix. I had previously relied on Gmail to notify me of Facebook comments & have since disabled all email notifications from Facebook.
The only issue that I had with both 1.7 & 1.7.1 was that initially, the pull down to refresh option didn't work but all I did was clear the app data & cache in the settings menu & once I logged back in everything has been flawless.
As far as the GPS pinging, I only had that the first time I logged in. Since then I haven't seen it once. But I do disable my location from my posts & never "check-in" anywhere so that may have something to do with it.