How does apple's Find my iPhone work?

I mean yeah sure you can locate the address, but how does it actually pinpoint it down to WHO's actually got your phone. How can the police find it? There can be hundreds of the people in the address the app gives you. For example: 27th street…
I'm pretty sure there's hundreds upon hundreds of people walking around in 27th street how are the police supposed to find the person who's got your phone?

Hopefully you don't live in Berkeley…

Police Chief Michael Meehan assigned 10 officers to find his son's stolen iphone - a phone that was advertising its own gps location… With the exact GPS location of the phone, 10 officers (some of which were being paid overtime to look for the phone - gave up…

http://www.berkeleyside.com/2012/05/22/hunt-for-police-chiefs-sons-iphone-cost-740-in-overtime/

You LOOK at your Apple device in an accurate map, and with the other apple device you just login on your Apple ID (the lost one) and choose to remotely lock your device (while you find it) make it sound at full volume and put a message on its screen to find it easily, OR erase All data in it.