Google knows where you are, offers localized search results
The end result is pretty useful. If you search for restaurants, post offices, libraries, or chain stores like Starbucks or Best Buy, there's a good chance Google will show you local results from your area complete with links, phone numbers, and a position on a map.
On the other hand, there's something a bit creepy about this new feature. I'm sure I'll get over it just like I got over the creepy, "wait, Google must be reading my email if the service can offer contextually relevant ads" jitters. But you can certainly file this under the category of "how much information do you really want any one company to have about you?"