Having just bought a Kindle for my parents and tried to explain what a "location" is to them I really think the programmers have won over common sense on this one. A "location" range is completely and utterly meaningless to 99.99% of Kindle users. I can hear the pencil pocket protectors being swung into action as people try to justify exactly what the number means and why it is important to have that over a page number.
I understand the arguments against page numbers about font size etc affecting them. However it doesn't change the fact that for the given settings I have there are x turns to get to the "page" I am on, and x turns left to the end of the book. Does x change when I change font size? Sure? But so what - once I pick I font size I get on with reading the book. It would still be nice to know if I am 10 or 100 "pages" away from the end when contemplating switching the light off at night, rather than I am at location 12xxx-12yyy...
Locations are lame. Hide the location #'s completely and avoid all the confusion with just a simple % and graphical bar. Add a settings option in there somewhere if geeks want to turn location #'s on, but let the rest of us avoid the utter confusion and distraction they cause ...
Rant over