Good news: Picasa Web Albums is now location aware. You can now attach geographical information to your uploaded pictures. Great idea.
Unfortunately, Picasa Web Albums does not seem to recognize all the geotagging information that I carefully added to all pictures using Picasa and Google Earth. WTF?!?
Either Picasa drops all the geotag metadata during the upload to Picasa Web Albums, or Picasa Web Albums is too stupid to use it. Either way, it looks like the integration between these three Google tools is not as good as it could be.