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For people new to ereading in particular, having locations instead of page numbers must feel very odd. However, locations provide (as HarryT said) an absolute reference to the part of the book you're reading.
I love locations because I can read a book on Kindle for iPhone and the same book on my Kindle and get to exactly the same place on each via the location. Yes I can also sync up wirelessly too but sometimes I find it quicker to input the location manually.
If you're reading a paper book or a book on a non-Kindle platform and you want to get to the exact same spot on your Kindle - open the book on your kindle and search for a phrase on the page of the book you're reading.
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