Location system in SkaDate works the following 2 ways:
1) Simple location mode: it comes with SkaDate by default. You don't need to upload any additional databases (fullcities.zip) and users must choose their country from the list and enter their state/county and city as free text values with all the drawbacks you mentioned.
2) Advanced location mode: You need to have complete database of states/counties and cities of the whole world or particular countries. Then users will be able to choose country, state/country, and city from drop-down list among the suggested values. Also users will be able to search and match by radius from a zip/postal code or a city. To add cities from admin panel you would need to know their coordinates which is a problem.
This database comes from a 3rd party, contains zipcodes and cities coordinates and needs to be constantly updated to stay relevant. That is why we can't guarantee its accuracy. All we can do is to download new versions.
We provide this database free of charge, of course. For hosted and managed customers we also install it free. Self-hosted customers can download this database from
Customer Area and upload it manually. If you believe another database is more accurate and it contains sufficient info, we can convert it to match SkaDate format for additional fee.
As far as I see from your words you guys do not have the cities database in place. If you wish to have one feel free to let support know. Also, if you have any suggestions regarding this system let me know.
Thanks.