Looks like the Mobile Craigslist app did the intelligent thing and added support for location services. After downloading the update, mCraig immediately asked me if I wanted to specify a location or use GPS.
This makes the app much more useful and likely to be used. I had thought it strange that the app kept defaulting to San Francisco unless I specified a region. I assumed it used location services (since the original app specified it.)
It's not as useful as it could be though. It looks like you have to specify Use GPS for location each time you want to change location. I haven't moved around far enough with it yet to tell.