Google's location-aware features can feel creepy at times, but in the case of mobile searches they can make life a heck of a lot easier. Queries made from most mobile devices in the US can now include suggestions optimised for your current location.
The basic idea is to reduce how much you need to fumble with your phone and give you the most relevant query suggestions possible. Let's say I'm sitting around in Tampa, Florida and searching for a museum. It's more likely that I might be that I'm looking for some quick info on the Museum of Science and Industry than for Louvre and now my Google search suggestions reflect that. Then again, the entire system isn't without flaws, unless people around my area are really more likely to search for the University of South Carolina than for a Florida college.
Ah well, the feature is live, so check it out and see if there are any oddities like that in your search suggestions. [Google Mobile Blog]