Did I ever mention I hate coordinate terminology and behavior in Revit?
Ok let me clarify. If you try to link a dwg into Revit, the location of the dwg geometry with respect to the Global Coordinate System origin is somewhat irrelevant as long as it all lies in a 1 mile radius. Revit will allow you to link it, but if it's that far from the Global Coordinate System Origin, Revit will not link it with the Origin To Origin option and will instead default to Center to Center. The dwg's origin is really irrelevant because now you set your Survey Point to a known value and move the dwg so that this point co-incides with a known datum.
However Revit will not let you move the Project Base Point (unclipped) outside the 1 mile radius from the startup location (which defines Revit's Internal Fixed Origin). So even though you can move your linked site far from the startup location, you won't be able to move the project basepoint outside that radius, which could limit you.
If you try and link a dwg whose geometry lies outside of the 1 mile radius circle, Revit won't even let you link it now, and you'll be presented with a warning dialog. This won't impact a large user base I think, but there will be projects that will need to employ workarounds to circumvent this limitation.
Jeff, I look forward to those Skill Builders! I'm currently working on some graphical examples to help explain the terms and clear up confusion. I'll blog about it in the coming weeks and post a link here.