Yes, this would work. The problem with random error is that it can be averaged out. The error vector must be consistent. One way to provide a consistent vector

Yes, this would work. The problem with random error is that it can be averaged out. The error vector must be consistent. One way to provide a consistent vector is quantization, which is as you propose where you assign a point deterministically to a nearby discrete set (in this case hexagonal grid centers). This still leaves some issues with non-static positions, or temporal variation, as you noted in (4), where boundary crossings (or worse, movement near 3-cell boundaries) allow better precision. I think a good solution in this case is to also add temporal quantization (limited update rate of position), as well as some hysteresis (to avoid back-and-forth between cells for people living near borders). This way you cannot pinpoint the exact time the transition occurred (you cannot locate the person in space-time), and with hysteresis you cannot tell he is consistently near a border. edit: Interestingly, all of those suggestions appear elsewhere in this thread! They all more or less appear forms of quantization.