This question was posted in response to the following article: http://help.adobe.com/en_US/indesign/cs/using/WS7C72CC97-DDA8-41a2-8C8E-5CC4A1722F80a.html
File Handling preferences documentation state that the 'Original Location' option for Position At .... preserves objects’ original locations in snippets...
I was under the impression that original location information was always preserved in a Snippet and this preference setting only controlled whether that information was used when placing a snippet.
I think you are correct in your impression and that the wording in that statement refers only to the fact that ID will use the location information, and preserve the location on the page when you place the snippet, not wheter the location information is actually stored inside the snipped itself. Could have been said more clearly, perhaps.