Via Gigaom.com this morning:

Finally, it is widely expected that Facebook is going to announce some kind of location capability at f8. By adding place tagging, in one fell swoop, they could gain the largest single userbase for updates tagged with location. The check-in behavior popularized by the likes of FourSquare would become more easily usable for its more mainstream audience. This was the approach Twitter announced at its own developer conference last week.

But as users start adding location context to Facebook data, there will be more opportunities to make use of social actions married to geo-location. Aggregating people around location will make it much easier for people to socialize and interact offline. It also opens up the opportunity to go after the lucrative local market, another place to compete directly with Google. Facebook could soon have pages for every local restaurant and hair salon, accompanied by user likes, shares and comments and enabling offline businesses to have closer ties with their users. That would give Yelp a run for their money, too.

What it means: There goes the neighborhood.  Om Malik clearly spells out the local revenue future for Facebook and interestingly enough, Malik says Facebook will “compete directly with Google”, not directory publishers…

Update: AllFacebook.com doesn’t think Facebook will introduce anything related to location.