Saab,
I think that in the switch to FTC, the IP address range has changed, and whatever geolocation stuff Google uses knows more about the new bunch of IP addresses than the old one. Or, even if the IP adresses did not change, quite simply FTC helps them locate the local town so much better.
Capetonian
You're not trying hard enough. In the early 2000s, the Co that I worked for managed all its Telecomms out of SFO, with "rented" big, quick pipes to everywhere. (Nearly everywhere....but that's just corporate politics). Wherever I was in the world, the Internet thought I was in SFO.