URL slug options

The URL options in the 1.5.4 release are:

1) Add full location info with country, region and city slug in listing urls
2) Add country and city slug in listing urls (/country/city/)
3) Add region and city slug in listing urls (/region/city/)
4) Add city slug in listing urls

Is Option 1) the only one that should be used when using Multilocation?

The reason I ask is that the Documentation states:

“Add city slug in listing urls:

You can only use this option if your site only covers one region or city, do not use if your directory covers more than one region and/or country.”

However, the demo site at http://demo.geotheme.com/ has two locations (Philadelphia and Glasgow) and seems to only use the city slug in its urls:

http://demo.geotheme.com/city/philadelphia/restaurants/morimoto/