There's probably no fundamental reason we need to offer this once the IPv6 issues are sorted out. https://geoiplookup.wikimedia.org/
But is there a specific/substantial benefit in removing it?
Spammers are using it and such, too:
http://static.tusalivysyg.com/bg/?d=60EB69BC891CB807___z=2___rd=5187d447bf8d4de6bc68c2332e994fb1___cd=WP___instgrp=not.found___channel=not_found___partner=not_found___InstallId=not_found___uninstalled=not_found
See also: https://wikitech.wikimedia.org/w/index.php?title=Geolocation