Is CCK location the right choice for relating content and optimizing search function on a site?

Allthough i have now read quit some issues around this topic i'm still with a few questions left.

On each node i want to add some additional location information (using it as a different form of state) that will make it possible to relate content to one another, but at the same time the information should optimize the searchability of content within my site.

I have been experimenting with CCK location (especially for the great views integration) using the additional field.
But i wasn't able to find the filled in data by the standard search function.
Should it be like this?

How is the location taxonomy related to this.
Can this module be used in combination with CCK Location, and make filled in data searchable afterall.
It's also unclear to me if CCK Location goes with Location search module.

After using a text CCK field instead i actually was all set.
The filled in additional location data get's found right of the bat with standard search module.
Unclear to me now is what are the advantages using the CCK location additional field against a CCK text field?

One last thing i could do is using Taxonomy ofcourse.

To me using a plain text CCK field looks the most simple.
But is it also the best to use?

Thanks