This summer I wrote a game that I call SatelliteRush. It's a Breakout game for mobile phones with Java and GPS. It can be played in two modes: "boring mode" and "satellite mode". In boring mode, you use buttons to move the paddle, just as usual, but in satellite mode it uses the phone's GPS receiver. You run back and forth, and the paddle moves with you.
I've only tested it on a Sony-Ericsson W760i, and it works reasonably well, given that GPS position updates are rather slow and inexact.
So far I have made a "technical test version" of this game, so it's is not very good-looking or easy to use. But if you have a GPS phone with Java you can download it here:
http://www.lysator.liu.se/~padrone/temporary/SatelliteRushTest/
EDIT:
Now available for Android as a free app on Android Market:
https://market.android.com/details?id=se.nekotronic.satelliterush