Excellent article, Joy! I'm a bit surprised and disappointed by Myth 3: Your service area impacts where you rank. If service areas don't affect search rankings and Google determines location rankings based on the address, then I don't understand why Google even has the service area "feature." What's the point?
A former client of mine acquired the rights to a specific geographic region of a carpet cleaning franchise. He ran the business from his home which was not in that territory. This is a perfect example of where Google could provide better results by using proximity to the service area rather than proximity to the client's office. Wouldn't you agree?
Just to be clear, I'm not saying you're wrong about the myth. I don't really know. Just saying I think the service area should impact where a business ranks.