Yes, this is exactly what I mean. But this is going even further, when the search depends on the physical location, not only on my friends, it could really impact how a young person can find things online, and how their interests could be slightly pushed towards their local/social area.

The point being, I don't even think it's better targeting, because it doesn't really focus on the user but on where the user is, while one of the good things about the Internet was that whatever I liked, I could have had the same chances of finding what I wanted no matter where I was. Now the where changes things. For some topics it's for the good, for others I believe it's not.