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Set geographic target in Google Webmaster Tools

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Google Webmaster tools has a [fairly new] option under Tools called "Set geographic target". You can set whole countries down to cities.

This is the first time I see this option in Google Webmaster Tools, and was wondering if it would be a good thing to do for a client's site that sells only in the United States. My guess is that it should pump up your "regional" searches while punish your searches outside that region. That is something I am willing to do, but I'd like to get people's ideas on this option.

Thank you very much in advance
 
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It is not meant to pump up regional searches more to give it less importance in generic searches. Also the fact that it is new (about a month old if I remember correctly) it may still be a bit risky to use as not all bugs will be out of the system.
 
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