I think the original point is fascinating:
Having just jumped on the Android phone bandwagon recently, she's saying the same thing I've been saying, that search with context is coming in a major way as GPS-enabled devices start to truly interact with the real world.
For instance, using Layar powered by Google MAPs synching from GPS I can see every restaurant in my local area looking thru the camera in a 3D grid to the horizon. You just look around and see where they are, pick one you like, click it and it tells you how to get there via walking or driving.
Based on the context of where I am and what I like to eat the choices can be reduced to make it more useful without information overload.
Another example of context is standing in the store using the Android bar code scanner, I get comparison price info from other stores, reviews and product specs all in one shot.
Skip the paranoia and conspiracy theories, think future forward to how computers will basically give you everything you need and serve it up easy and seamlessly.
Moving forward, my Android phone could easily alert me it's lunch time and make suggestions of my local favorites based on GPS or offer new choices based on the type of food I like.
The phone could easily know what I like just by tracking the amount of time I spend in a single GPS location, so it'll know where I shop, where I dine, things like that.
Already an app for that called Footprints but it requires manual action to record a location but it's really not required as a little automation could make it perform much better just based on simple information such as where you are and how long you stayed.
Now imagine the phone starts looking for RSS feeds, coupons and other such things for the stores that I frequent and alerts me when my favorite products are on sale so I can save money, simple example of the computer knowing what I want before I ask for it.
The phone can even be smart enough to scan the local grocery stores and restaurants for specials as I'm driving home so I can avoid a second trip and stop on my way home.
That's where we're going and it's almost all possible today.
Life will be so easy when computers can take everything you do in context you'll wonder what you ever did before ;)