Currently, Unturned randomizes the location that you spawn at between a bunch of individually placed spawn points along the coast (in most maps). A location based approach would have a large volume in which you would send the player to a predetermined spawn point close to their point of death. This would be highly useful for large or very large maps as it helps to be able to recover loot lost on the opposite end of the map from where the player respawns.
For example, on my map Scotland is ~2 entire large size maps away from the southern coast of the island. If you die up at the northern tip of Scotland, but spawn in Cornwall, that loot is as good as gone. Were this feature to be added, there could be a small safezone style building that the player would spawn at if they died in a specific area of the map; i.e. the respawn point for Scotland would be actually in the general area of Scotland rather than just a randomized spawnpoint elsewhere on the map.