Carrier IQ, the iPhone data logging software built into iOS that caused a firestorm earlier in the year with breach-of-privacy concerns, has been confirmed by Apple as still existing in iOS 5. According to the company, Carrier IQ will be be completely removed in a future update.
We stopped supporting CarrierIQ with iOS 5 in most of our products and will remove it completely in a future software update. With any diagnostic data sent to Apple, customers must actively opt-in to share this information, and if they do, the data is sent in an anonymous and encrypted form and does not include any personal information. We never recorded keystrokes, messages or any other personal information for diagnostic data and have no plans to ever do so.