We recently ran this, performing both a Master and Transaction Level (Method B).  We noted that the program recreated inventory locations (all with UOH of 0), that we had previously consolidated and removed.  
Since the system should have seen that the locations did not exsist, and the UOH's were 0, why would one want it to automatically recreate the locations?  Should there be some warning/checking for this?

I would guess that in you consolidated inventory transactions to a date after you removed the locations, you would be O.K.  Of course, this means losing what might be valuable historical data.  Not fun, either.