AdultFriendFinder. All their ads guess my location and try to convince me that there are lustful women in my neighbourhood who are desperately looking for someone like me.
Yes, it isn't all that accurate. I did a cross-check with a few friends to see if the results matched the Maxmind free database. It seems they are using that.
I can't figure out if you're actually trying to help, or if you're just a sock puppet for "marchost". The fact that this is your only contribution to HN does not ease my apprehension.
Google (try a search for e.g. 'pizza delivery'). However if you have the appropriate cookies set, I believe it will use a remembered location rather than your IP-derived location. I don't know whether to consider this a feature or a bug.
I haven't seen anyone do anything I've found really useful. Most are like this one, that tells you how long the sun is over the horizon based on where you are: http://mersol.se/