Applications like addresses of Restaurants and Location based special offers by many businesses and finding friends in local places is cathing on really fast among mobile users. 16 Milion people already use this service which is set to cross 45 million by 2011.
Maps is a blockbuster application on LBS and soon with refinements to the LBS ecosystem the whole deal is all set to get ever alluring to the users.
Location based services can also get popular in countries with high level of tourist influx with those new in the country can get information in hans without scouring for it from th eunhelpful and sometimes dangerous locals. So that dimension is the one I like.