D7

Why not use http://drupal.org/project/geolocation?

Maybe we should integrate the features of this module into geolocation?

Geolocation already supports field, and adding this field to user entity will do the job.

So is the word on the street to abandon this module in D7 in favour of an expansion of Geolocation? If so does the Geolocation module already provide this?

Yes and yes