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The package limitation for a GPS device that can transmit over GSM networks isn't the size of the chip, the microprocessors. The act of taking the raw timing info from the GPS signal, converting it to position, and parsing it for a text message... can be done on a bit of silicon the size of a pea now.
The package limitation for this device will be antenna interfaces, power & signal conditioning- these are solid state objects that are still limited in their fundamental size, although major advances in antenna tech have been happening over the last 10 years.
Google glass isn't quite a good benchmark as it requires pairing with a phone for it's data connection to the outside world via cell signal (unless that has changed recently, but I think that is the case). But take away the camera and eyepeice and add a cell module like the data module I linked to above, and you're right on target.
Then the only package driven becomes battery size- how long you want it to run on a single change.
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