I was chatting to somebody yesterday who said they (and their students) initially found the concept of a "room" in Quest a bit confusing, as a lot of rooms aren't really "rooms" (in the normal sense of the word) at all - they could be bits of rooms, or outside places.

So I was wondering what you guys thought? Would it make sense to call a room a "location" instead? Then in the Editor we would have an "Add Location" menu instead of "Add Room", a "Location description" instead of a "Room description", etc.

I think its not a problem to name it location. You have to do the work

I agree with "Location".
For me there's no confusion, but I think is more descriptive "Location" vs "Room".

Room is more traditional, but I also think Location is more appropriate, so changed the name between ADRIFT 4 and 5.