Correct, the issue is not fixed. Results will continue to be sparser than before until we're able to restore the "fallback to profile location" functionality. We're working on that but don't have a firm timeline; however, I'm not expecting a fix in 2014.
Internally we're tracking this issue as PREL-11171.
If folks are noticing tweets which are geotagged and should be returned in search, but are not, please provide details: the search query being used and links to tweets which should be in the results but aren't.