Think I'm pretty much the only one in the thread which can see both sides to this;
I like the idea. Having simple English words to describe a location, which you're unaware of, is great. It makes much more sense to say three words, rather than a whole string of GPS co-ordinates. Although everyone understands that giving the exact GPS co-ordinates is by much the more accurate location, there's by far a greater degree of error when giving those details over.
However, the biggest issue with three words, is that it isn't based on any logic; Having Purple Monkey Trashcan and Purple Trashcan Monkey appearing in opposite sides of the world defeats the purpose of choosing three words to cut down on errors and improve location finding.
Good idea in principal, I'd like to see it improved by using more of a grid system - even expanded to multiple extra words - First word is always the UK, second word is town, third word is a smaller reference square, forth word even smaller, 5th finally smaller to a square of say 30ft or so.