Is physical location important to mobile marketing?

Before I look into the Tsuyata case, I thought physical location is longer important as users can access information through internet to shop around anywhere. However, when I think deeply, user location is becoming more important as mobile marketing advances. Why?

Personally, if i'm equipped with a location-based mobile phone, I would be most likely looking for something nearby, rather than wanting to purchase something online from that small screen. And I think this is the reason why Iphone 4 tried to capture users' location by pre-installing a GPS system.

Do you agree?

Joseph