If work or house location is a constraint (i.e. not willing to change one or the other) then the goal is to find a local minimum (not global). So this is really just a personal optimization exercise, not a competition. From a transportation efficiency perspective, being able to live close to both work and food sources is ideal. In large cities the jobs tend to be clustered in a small area and competition will drive the cost of nearby housing up (we're not the only ones trying to optimize, many humans intuitively do this too). I'm not sure it's methodology as much as it is reality.
Keep in mind that the "divide by 100" in housing cost is supposed to reflect your personal preference for financial vs. transportational efficiency and when performing your own optimization, you can adjust this (and divide by 50, or 200, or use a custom math function) to suit your preferences. Also, suppose your income is X when working in a small-midsize city, and 1.5X working in a high cost of living area. You could add 0.5X to your cost of housing in the small-midsize city to reflect the opportunity cost of living there. But this presumes you're willing to change both work and housing.
@iDave - The reason for calculating distance to work and grocery is that money and food are both necessities for most people. Since you're FI, you could replace "distance to work" with "distance to nearest suitable lake" to suit your preferences. Presuming cost equal, is a house next to the lake equally preferable to a house next to the grocery store or one halfway between? When you are retired and have all the time in the world, you might not be optimizing distance to grocery anymore. In that case you just set a constraint for it and leave it out of the objective function. Or you might decide that optimization feels "too much like work" and the inefficiencies are tolerable, so you do something more interesting instead, like fishing or playing the guitar.
Instead of comparing to an absolute rating scale (which was thrown in there just for fun), anyone who is optimizing should take the next step and start looking for suitable alternatives to see how much efficiency can be improved by changing jobs or moving house.