Is the geographical co-ordinated just a random location or can this be a specific location that you pick?

- you can pick any location from a map. This is currently not part of the poc and more a implementation detail. i would recommend only offline map data.
On google earth i can pin pretty much meter accurate.

I simply store pieces of the whole Private key in different online services

- of course but you could not easily transfer this to another person. If you are stuck somewhere and your last hope is a single phone call, what would you do?