One thing that I don't quite understand is two locations very near each other have completely different sets of words. I would have thought there would be some sort of hierarchy of words (sort of like geocoding a lat long where it defines a box and the precision of the geocoding gives you larger or smaller boxes).
I wonder too if there are going to be collisions of words and locations that aren't going to make people too happy. Though they must have thought through that too.
Either way it is an interesting idea.