Lucky for the lady and her missing iPhone, a police helicopter was already in the area and was dispatched to the iPhone's GPS coordinates. The tracking was so accurate that the helicopter was able to spot the thief riding a stolen bike down a city street. The 16-year old suspect ditched the bike as soon as the helicopter was hovering above him (who wouldn't?) and ran towards the Tram to make a hasty escape.
The suspect was apprehended by police on the ground in Bundoora, and the unfortunate lad was caught with the stolen iPhone and some marijuana. He is now being charged with burglary, theft and the possession of cannabis. Mark that down as another win for the now free Find My iPhone service and another loss for iPhone thieves.
Thanks to Gavin B for sending this in!