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Yes, they should.

Trepia - the 'iChat on crack' geograpically-based instant messenger - was co-started by the same guy as YouTube.

Trepia never really got going. Partly due to a small userbase (compared with every other IM), windows-only client (it *just* worked under WINE), and pretty poor location detection (you had to tell it where you are).

Looks like Meetro are taking over that spot, although I note they don't have non-windows clients either.

There's actually a new program that works similar to trillian and gaim, in that it supports multiple IM clients. But it's actually got a really cool added feature - in that it allows you to see people who are near you.
It's a pretty new service, so not all areas are populated, but I think it's great.
It's called meetro
http://www.meetro.com/

There is a short list of applications that are already using this. Most notably Skyhook Wireless, Meetro and Active Campus.

Though I agree that the IM client market is over-saturated I also feel that if Google were to take on a client for itself there would be something unique about it.

This Meetro IM client (http://www.meetro.com/ does posess something that sets it apart from all of the other clients/metaclients: Location based contacts. If you are in Sandusky OH and want to meet up with other people who share the same interests as you do for a day at Cedar Point, go to a wi-fi connected spot in town and find someone local or visiting who wants to go.

Give it a peek.

I went on the site of the mentionned company and it features a flash movie stating it's an IM that connects you with other buddies geographically near you (like 0.25 mile) and with the same interests...

If this was true, I think it could be very interesting: sometimes nice events happen in my neighborhood and I just miss them because I didn't know there was something happening... or those who don't know their neighbors? (disclosure: I know my neighbors!)

An app allowing you to discover the life in your community (neighbohood) while letting you to remain anonymous (if wanted) would be a hit. You could subscribe to local RSS feeds about social/cultural events, for example or find the association you were looking for.

To be used, such IM app would need to function with minimal self-disclosure... with IPs? I know there are free databases to segment IP per countries but, what about IP per cities/neighborhoods? Does anyone know something about that?

The net performs great to access stuff by subject but performs poorly to find things near me.

Actually, check out http://www.meetro.com/ . This client is location based. It auto-populates your buddy list with people around you based on criteria.