I'm also trying to figure out if Azure has any of this new stuff. At this point, it is my preference (and my hosting company only has SQL 2005).
Might be able to develop the rough grid stuff off of this:
The Maidenhead looks promising - smallest resolution is 3.5 x 3 miles - and the encoding (MM44NN55) would easily lend itself to very fast SQL lookups (Quick calc to convert lat/long to Maidenhead, and then could pick which pair to look at - so MM for the world-level grid, 44 for regional, NN national, and 55 for local).
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