The purpose is to prevent forgery of documents. Actually, even more fundamentally, it is a way of saying "I was at this place at this time" - I don't believe there is any system which can do better than that (any kind of device-based fingerprinting would be a DRM scheme, and therefore flawed from conception.)
I don't believe that these documents could be made to be self-verifying, although this is the sort of attempt being made with J3M.
CitizenMediaNotary proposes to make documents network-verifiable against retroactive forgery, but this is actually a different problem ("have we seen this before" rather than "where in spacetime was this created").
Let's suppose a use case. Seems like we're about to have a nice little war in Syria, so let's use that. Suppose a citizen reporter creates an image of a bombed-out orphanage for impoverished nuns. Al-Jazeera wants to run with it, but can it be trusted? How do we know that this is actually an image from 2013 Syria, and not a previously-unpublished image from 2011 Libya, uploaded by a military agent?
A geokey system would use network properties to assure that regions of spacetime have unique identifiers. These identifiers could then be tied to media, with a network protocol or J3M or something similar. Ideally, the handing out of these cryptographic identifiers would actually be done via satellite and not IPv4, as spatial IPv4 allocation isn't always accurate, especially with mobile phones. Also, the thought of there being geostationary microsats for the sole purpose of providing cryptographic spacetime assurances just gives me the sci-fi tinglies. Imagine little crypto robot oracles wizzing through space, beeping out random zeros and ones back down onto the planet!
I guess the best we can do with this system is just narrow the "forgery surface" to people who are at a certain place at a certain time who have also preconspired to construct forgeries based on the keys generated by the oracle. This is not perfect, but it's better than nothing - assuming that we keep this limitation in mind.