According to the Twitter API Announcements list, Twitter is rolling out a whole new set of geotagging features that will be hugely important in the location-based services space:
our goal is to provide a few more options to API developers (and the users they are servicing) through this contextual information. people, we find, inherently want to talk about a "place". a place, for a lot of people, has a name and is not a latitude and longitude pair. (37.78215, -122.40060), for example, doesn't mean a lot to a lot of people -- but, "San Francisco, CA, USA" does. we're also trying to help users who aren't comfortable annotating their tweets with their exact coordinates, but, instead, are really happy to say what city, or even neighborhood, they are in. annotating your place with a name does that too.
Presumably these features are a direct result of Twitter's acquisition of Mixer Labs late last year. In any case, this goes a long way to solving Twitter's location privacy issues, as users will be a lot more likely to turn on location sharing if they can share their general location rather than a pinpointed latitude and longitude.
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