I will not pay for any of these services, btw. Certainly not. So you're right if you're not excited about location based services as a business model. They tried it before, it didn't work. But anything that either comes for free or a neat add-on to a service you'd pay for, anyway.... that's a different story.
I would love to share my location with certain contacts - all that's needed is a way to make sure I can control who gets the information and who doesn't. Would be nice to have my cellphone beep when a friend's two blocks away.
(Distance sensitive appointment reminder)