Even if you put a "black box" in the cab, you still cant ever be 100% sure that it wasn't tampered with, and so due to that uncertainly, the consensus can never be totally reliable.
Makes me wonder if the driver on the move could prove her position at
intervals to all the other participants on the network in a non-fakeable
way, like using triangulation of a radio signal
You are still trusting the provider of the triangulation sites. This is thus still centralization. There is no way for the block chain to be objective about that, unless it is merely recording data trusted providers have signed.
There is nothing wrong with using a block chain to record driver signed updates on their position. Thus trust is based on reputation.
But you don't need atomic Smart Contracts (Dapp Koolaid) for that. Each user can run a program on their client (which doesn't need to be atomic with the block chain) to read the data on the block chain and interpret (according to the reputation that user trusts).