1) Google Maps is still very much a stock international install as an app. It is not localized. Thus you see the gaping holes in the product like directions, traffic data etc. Stupid of them to do that, but I think this is still a tiny market in India. They should not take it easy, but they can afford to.

2) A common mistake that people do while looking at Google's products is to examine the parts individually than look at what the sum of those parts amount to. From that perspective it is a HUGE thing.

Google already mines data about where you are searching/accessing its services from what I am guessing is ISP level data, which is dug out from ASNs.

This is used for their recommendation services (emphasis mine): "Your recommendations list is automatically generated. It takes into account the feeds you're already subscribed to, as well as information from your Web History, including your location."

Google's core business is connecting the various dots about you to draw the best advertising profile picture of you. This is only another step in that process.

3) I have been using various mobile location apps now, incuding Wayfinder, Nokia Maps and Google Maps, the current GM release is by far the and average-Joe-friendly implementation I have seen of the product. It seamlessly ties in with their existing products

4) This is just a ramp-up of their crowd sourced approach to eventually doing complete maps. I still think they can pick up someone like a MapmyIndia for cheap, especially in this environment, but why should they, when you, me and our uncles will do it for them for free? :-)