Hello Edward,
This is a great question Edward. From the detail of your question it sounds like you have a pretty good understanding of the Rules. Please bear with me in this answer as it will also assist those have less Rules knowledgeable as well.
This is not a simple question to answer. Why, well there are many different parts involved.
First
Distance Measuring Devices (DMD) are only allowed if the Committee has adopted a Local Rule. Many golfers have been misled by commercials and advertising stating things like “now legal for play.” It is not this simple. A DMD is not legal unless the Committee “approves” them with the Local Rule and I think you would be surprised at how many clubs do not have the Local Rule in place either through ignorance or choice. In addition, the Local Rule is limited to DMD that measure only distance. DMD that measure anything else that might assist the player with play are illegal, regardless of any Local Rule.
Second
With respect to the use of DMD on “Smart” Phones, the onus is now on the player to ensure their fancy DMD is legal. If the device has any other features (e.g. an application loaded or installed on the device) that measure or gauge anything other than distance the device is non-conforming even with the Local Rule in effect. Some examples of non-conforming features include: Slope Reading Applications, Wind Gauging Applications & Altimeters. If the device does not have any non-conforming features, it is legal for play when the Local rule is in effect.
Third
Here is where things get complicated. A penalty cannot be assessed for a non-golf related breach. The most common examples of non-golf breaches include dress code and cell phone/electronic prohibitions.
Thus, if the Committee has prohibited the use of cell phones during a competition but has adopted the Local Rule it is in a very tough position regarding regulation. The DMD is legal but, due to a Condition of Competition, the cell phone is prohibited. At this point, about the only thing the Committee may do is ask the player to stop using it. If a player refuses, the Committee does not have much recourse. Ultimately, the Committee could assess a non-golf related penalty by revoking a player’s entry, suspending them from a future competition, kicking them out of the club or something similar though it I would strongly discourage a Committee from taking this action. After all, why would a Committee discipline a player for using a GPS on a smart phone when you allow a player in the same group to use a dedicated GPS. Clearly, this would not be the best way for the Committee to handle the situation.
Thanks for the question and for your interest in the Rules of Golf - regards,