This is an awesome feature. Unfortunately it doesn't seem to work very well. It doesn't work for 1984, any of Shakespeare's works that I checked, The Holy Bible, or any of the dozens of books I randomly clicked on. Big let down.

And why haven't they done this for Google News?

Some names will not be unique, like Springfield or Brest. Always picking the biggest city may produce skewed results. Or does this feature take context into consideration?