It's an interesting one.
I know so many PPLs who fly VFR solely with reference to the GPS. No sign of a plog or a chart! I always wonder what they would do if everything packed up on them or the GPS is inaccurate (as has been the case with a few documented zone infringements).
Now, I'll stop being an old fart for 5 minutes. The GPS is an incredibly useful tool to use, as it does improve situational awareness (providing it's working!) It can also reduce our workload as many GPSs can do all sorts of other clever things without us having to think about it. No wonder that so many pilots use them. It strikes me that perhaps it is the legislation that should be changing to meet the technological changes of today.
I am not saying we should all go out and fly IFR just on a GPS, but the situation you found yourself in does raise some interesting issues. The problems seem to arise when people use their GPS as if they're flying on instruments without looking outside the aircraft to make sure things add up.