Question

Is there any way the gps is able to do this intelligently, or is it just checking positions with the given frequency, and if the position is less than x meters away, it does not fire the event?

Answer 1

See requestLocationUpdates() documentation:

The minDistance parameter can also be used to control the frequency of
location updates. If it is greater than 0 then the location provider
will only send your application an update when the location has
changed by at least minDistance meters, AND at least minTime
milliseconds have passed. However it is more difficult for location
providers to save power using the minDistance parameter, so minTime
should be the primary tool to conserving battery life.

So by declaring minDistance you are also declaring minTime. Provider will send you an update if minTime expires and your device has moved at least minDistance. So your assumption is correct. Also note that minTime is just a hint for provider, you may obtain updates earlier than minTime expires again.