Using the word "in" for location targeting

Opinions wanted.

Let's say I'm a rare book collector.

I find that the phrase match keyword "rare book collector" is worth $4.00 to me.

However, when I dig into the match search terms, I find that about half the people searching for "rare book collector" are searching for a location along with it. ie "rare book collector in Phoenix" or "rare book collector chicago area". The half that are using some sort of location qualifier actually are really profitable for me, so if I could choose, I'd bid $5 for those and only $3 for the others with no location.

Two questions:

1. If I do a keyword "rare book collector in" will the "in" get ignored because google doesn't deem it as an important word?

2. If I break out a bunch of locations and do a bunch of key words, would it be counterproductive to try to generate hundreds of city names, some which would get very few impressions? I guess the question is if you have a keyword with 10,000 impressions a day, but it actually breaks out to exactly 10,000 variants and you segregated it out into all 10,000 keywords, would you get 10,000 impressions? Or would google never throw out your keywords to bid because it thinks they have too low of impressions and get ignored?