Games are a totally valid business and solve the problem of boredom. It seems like you're dismissing games as a category of business and that's silly. Just look at the giant video game industry.

I don't think that's all a location-based service provides though. It always seemed silly that everyone has mobile phones, and yet I have no way of knowing where any of my friends are without polling each one individually. So far they haven't helped since most people I know and care about are not on them yet.