It is helpful because some folks want to connect with others in their area. For example, a big quilt show will be near me next March. By typing "FL" in the search box on the member page, I can generate a list of folks who might attend.
Some newbies are also looking for mentors, who can give them "hands-on" help.
One lady here lives across town from me, and she is very cool! If she had not taken the time to put in a location, we may have never met.