In ArcGIS 10, we can do rectifcation with RPC or ortho-rectifcation with RPC & DEM from Raw Bundle of imagery (IKONOS, GeoEye, QuickBird, OrbView, etc). But it would be very useful to also include GCP from references or surveying data when creating a Mosaic Dataset to improve accuaracy. Or, enhance the 'Georeferencing' tool in Desktop to work with Mosaic Datasets, in particular the "Update Georeferencing" option.
For background on the reasons for this workflow, please see below: ++++++++++++++
For engineering-grade accuracy of processed images, 2-3 pixels are allowable in shift (horizontal), corresponding to historical GIS & imagery references or surveying data [those references can be used to collect ground control points (GCP)].
As we know, for example, with RPC and very-high-resolution DEM, GeoEye-1 can offer up to five-meter (10-pixel) geo-location accuracy, which means that customers can map natural and man-made features to within five meters (about sixteen feet) of their actual location on the surface of the Earth. So far, no other commercial imaging system can do this. [Of course, only using RPC without DEM, GeoEye-1 geolocation accuracy becomes poorer, even up to 10-meter (20-pixel) in shift...]
So, without GCP's integration during rectification or ortho-rectification, the spatial accuracies of finally-processed Mosaic Datasets are usually not enough to meet the basic requirements for some GIS applications requring accurate imagery.