Why does it have an l-tag for each decimal point in both lat and lon coords? Is that how the geotag nip work (I haven't read much about it)?

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I don't know either. My guess is that's for very laze search mechanism. It's especially useful for geohash, so you can look for other pictures in the same small / wide area.

Maybe less so for lat/lon.

https://www.pubnub.com/guides/what-is-geohashing/

I might modify the script to only do incrementally sized geohash and just have a single lat/lon coordinate.