Location breaks usernode which breaks buddylist2

As a complete newbie to this, please close this bug if this is nonsense.

After sepnding hours figuring out why buddylist2 stoped working I figured our that it was because usernodes stopped being created for new users. When tracing this down, I found that once I disable Location module it is solved. I traced that down to the 'form_alter' of Location adding its stuff into the usernode form, breaking it somehow.

This might be solved by changing the way usernode adds nodes, but since i don't fully understand why they decided to do it like this i added the following in location_form_alter line 522:

  elseif ($form_id == 'usernode_node_form') {
	return;
  }

Please let me know if this makes sense.