While I believe the setup (and the limited range of Bluetooth) makes this particular implementation of questionable value, I believe that the idea of locating users by immediate area is awesome. I wouldn’t use this for finding new people who are in my area. Instead, I would prefer an application that would pop-up when a friend of mine (Facebook or whatever other social network) happened to be in close vicinity. Of course, I can usually spot them with these things called eyes, but still.
Thanks, Download Squad!