I'm a bit confused about the "hash" part of this... wouldn't you want to be able to go back from the hashed string to the original location? I can't think of much of a use for only being able to test locations to see if they match a proximity hash.

Internally, the space-filling curves are super interesting. I highly recommend this writeup [1] on how they're used in things like planet-sized maps. I've heard rumors that Google adjusts the offset of their space-filling curves to minimize large discontinuities near land and push them over the ocean instead.

[1] - http://blog.notdot.net/2009/11/Damn-Cool-Algorithms-Spatial-...