Piss someone off and they can just come to your house. Woot! Sign me up!
Seriously, you wouldn't have to put in an exact location, but I think it would be helpful to know how many systems there are in various areas of the world. If someone offers advice concerning TV parameters, for example, it would be handy to know if they are likely to know anything about your region. Similarly, it would be interesting to see if it is worth trying to set up a user group or if the nearest system to yours is 2 countries away!
Nobody is saying you would have
to fill it in, but the option should be there. Like everything else Linux, it;s all about choice and we currently can't choose to do this