On the Web, the domain name IS the location in terms of how the user interacts with the Internet. So it's not just a labelling device. The domain name is how we identify, locate, and find resources. That's exactly equivalent to how we identify, locate, and find physical resources in our community. For the needs of the public we physically segregate certain resources from others. The cyber equivalent would be to segregrate resources based on their domain names.
I know how the web works. We'll just have to agree to disagree on this one.