Yes media and notifications are on my list, a very popular request.
"Which location service does smart actions use?"
Smart Actions uses its own logic to capture locations which is depending on Wi-Fi. We dont use Verizon Location Services at all. To save battery life we check occasionally. Many factors effect how frequently we check so its a bit more than 5 min intervals.
I'm not involved in product planning, so I don't know if it's coming to the Droid or not.