I think there's some confusion here as to what AGPS actually is.
AGPS, at least in the context of mobile phones (see the Wikipedia article on it for how AGPS can be used in other systems), is where the GPS uses the coordinates for the cell site towers you're currently using to provide a course location to the GPS system. This is then used to calculate which satellites should currently be visible to the phone, and hence it can prioritise looking for a signal from those satellites instead of wasting time trying to find the 30 odd others, so it gets a lock much more quickly. Some older stand-alone GPS systems used a similar system by asking you what country you were in on startup. This is equally effective, but not automatic. AGPS on Android phones doesn't use WiFi at all.
There is a system called SkyHook which both Android and apps running on Android can use for position location. This system combines the following three positioning systems, and is where WiFi comes into the picture:
* GPS (accurate outdoors, slow lock time, doesn't work well indoors)
* WiFi (locations of known WiFi locations by MAC address - fast, but only works very near to WiFi points that are known to Google/Skyhook)
* Cell tower location (only works if you have a phone signal, inaccurate, instant information)
This is not AGPS though. This is SkyHook.