|Component:||Views Filters Selective|
There is a bug with Views Hacks, selective filters at the moment. This issue has been reported here: http://drupal.org/node/1608498 as well. The options being displayed by views in most instances are ids instead of readable names for users. In terms of taxonomy, sometimes it is returning term ids. The location module is no exception.
Attached is a patch to allow filtering of location:country to display country names as opposed to country codes. Hope it helps someone whilst the community works out a more universal solution.