That said, whether it's a paper map or GPS display, the ability to read the landscape around you and interpret those same topo features on a map will always be critical to finding your way around in the backcountry when it's necessary.
If I hike with a GPS it's to track milage or altitude. I've never hiked with a GPS to show me the "way". I use a map, landmarks, and compass if necessary. That being said I have a story to share from this last weekend.
I had my Boy Scouts out on a camping trip in an area that I'm -very- familiar with. However, I still carry a map with me (and reference it) when I'm hiking with the Scouts. I like to gather them around so they're looking at the map with me so they can show me where our next move should be to reach whatever the goal is that we've set.
We got to a particular point in our hike where the trail we were hiking on intersects a freeway, another trail (that we were to transfer onto) and a campground on the other side of the freeway. Some of the boys and leaders went to the campground across the freeway to refill water bladders and use the restrooms. While over there, one of the leaders was approached by a couple on horseback who were having trouble finding their way back to the staging area that they began at earlier in the day. The other leader called me over and told the horse couple that I could probably help them. The lady had a map that she was trying to read, and I had my map out as well. She kept asking about a particular trail that she saw on her map that would lead back to the staging area.
At this point we were less then an hour to sundown and, by trail, about 3-4 miles from the staging area (and from the Scouts campsite down another set of trails). Anyways... I cross referenced her map with mine because I just couldn't think of what trail she was talking about out of the campground. Finally she traced it with her finger and showed me exactly what she was talking about....
I looked at her and said, "I'm sorry Ma'am... but thats not a trail, it's a stream"...