I think it would be a very good addition. It would add another level of scale to the game, you know? It would be like letting people design a silly simulacrum of their local area possibly even, what with the open development. Each state could have it's main city, with some states like those with the capital in another city being like going on a mission requiring a car is now, with a few landmarks and a lot more generic shops or locations that all cities share. I'm not a city person, so other people would have to fill that in.
It would be cool to include as much content as people will submit. Someone could visit various city's websites and ask about what important locations those forumgoers would want to include in a video game such as LCS alongside the generic factories and oil rigs and banks and such. By that, I mean a sort of 'area generator' where you type things like 'Steel Factory' for the location title, then type a name for a component to break or some other game mechanic to effect with an action. If it could be on a simple website you could collect a large amount of simple descriptions if you advertised it a bit where LCS is played, and also if the form was generic enough you could post it in city forums to get it filled out; I assume most metropolitan areas have some sort of forums or Twitter by now. I'd recommend that they don't use actual place names, but more of a generic desciption. That sounds like a fair bit of work I'm not proficient in doing though, so I have no expectations whatsoever, just an idea as to how I'd go about it were I capable.
Honestly I think the more locations in LCS, the better. Lots of various neighborhoods being effected at both the national and the local level would be cool. It would be cool if you could still win the game by having a network of non violence across the country by being stealthy, it would be a sort of the moral lesson that would be for a second playthrough. You know the one, the one where you realize you could have done it without killing all those people in Alpha Protocol for example, by letting the CCS shoot themselves in the foot by waiting until they attack you once you reveal yourself in a non-violent way. Maybe have game modes where the CCS is non violent until provoked by violence by liberals, where the game tries to match your violent acts by sending in the CCS to keep you from just shooting a bunch of people to raise concern for gun control. I guess that game mode could use an additional choice whether or not you are almost be forced to use violence followed by an escape, such as Deathsquads (if starting c+) or the CCS having knowledge of your past attempts to infiltrate them/monitor them/live a liberal life, and having a few of your associates kidnapped or otherwise detained for information that you somehow heard about. How much they know about you I guess would depend on the above choice and maybe how conservative the laws are at start.
It would be cool if site actions were way more effective in that case, so that area is swayed for a decade or more. That way once you pull out the guns, you open a sort of Pandoras Box and it gets crazy real fast with the police and the CCS chasing survivors over state lines and stuff.
EDIT: I think I started with and then was distracted from this leftover paragraph I found in editing, but I think I typed it in response to something I saw in the thread:
People in small towns will drive very far every day to find better paying jobs in urban areas, also. We're talking about driving for an hour or two on the highways at 55 to 70 miles per hour, and waking up at 6am while driving 4 hours or more a day and getting home around 7 or 8.