XBLA "gamer zones"

Are XBox Live's "gamer zones" actually used when matching up players for games? I just witnessed a Carcassonne match between a local-to-me player in the "Recreation" (happy fun whee) zone versus one in the "Underground" (lol fag pwned) one. I found it surprising, and deeply unpleasant. ("Surprising" in the principle-of-least sense.)

When I was presented with the list of zones while setting up my account, I thought: that's a rather nice idea. I'd be quite disappointed if the XBL world pays it no mind, though.