deadsea - 11:49 pm on Oct 21, 2012 (gmt 0)
I suspect that you've got to reach a long list before Google dings you for keyword stuffing, as such lists have been a common practice, originally intended for site visitors. Depends, I suppose, on whether the list is short enough to be easily readable.
I'd also hope that it has something to do with whether or not the keywords are appropriate for your business.
If you run the Widget Restaurant chain and have a page for each city (whether or not you have a restaurant there) that would be spammy. Nobody wants to land on the "Widget Restaurant, Mayberry, CT" page and find out that the closest Widget Restaurant is the one in Providence, 50 miles away.
Similarly, it would be spammy for a contractor to list a town so far away that they wouldn't accept jobs there (or wouldn't usually accept jobs there if there was work close).