Obviously not a priority but it would be great long term to be able to tie in the location of a user to various information.
User location could be used to highlight forthcoming tour dates of an artist in their library (or recommendations). I haven't spotted any open alternatives to something like Fire Eagle but there is Geonames or Gisgraphy which provide a places search service (creative commons license). The other stumbling block would be attaining the tour dates themselves.
Users could allow their location to be visible to other users that have a similar musical tastes.
There is a long term plan in !MusicBrainz to store location info of recording studios, concert locations et cetera. http://wiki.musicbrainz.org/Location_Proposal