It seems like a major drawback to this approach is that the address for nearby locations have nothing in common. That makes it harder to get a sense of where something is based on the address alone.

Previous discussion here: https://news.ycombinator.com/item?id=11894368

I'll repeat my opinion: this is a really dangerous move for Mongolia, and one I hope will not be emulated by other states.

Very cool idea! Just wondering if it's feasible to do something similar with two words?

Sure but the area covered by each pair would be much larger due to the drastically smaller number of combinations available.