As far as I know, ConnectNow does not use the location for discoveries....
you probably can only use it for display/grouping/sorting purposes so it is up to you how you want to format it!
Connect Now doesn't use this at all as far as I know.
I tend to be extrememly granular in my SNMP locations especially for gear in a data center. Going as far as to specify rack placment and potentially even RU number.
You can then include the SNMP location information in say an alert email so that it is formatted in a very usuable fashion for someone to investigate.
Router is currently down. Equipment is located in LA DC Rack 2-31