I have found a few apps that do seem to get around the issue and make an external GPS device accessible to location-based apps, but all of them I have found so far requires Android 2.0+. These include Bluetooth GPS Mouse and this independently made one:
http://sourceforge.net/p/bluegps4droid/home/
Think anything workable can be found? Or are we stuck until we get that much-anticipated update something this fall to 2.2?