One of the problems with the FindNearby method is results are limited to the CURRENTLY VISIBLE PlaceCategory objects (Like Restaurants, Airports etc..) So even if there is/was a way to get the city from the nearest "Place" the results could not be depended on.
A better approach might be what David is exploring (Also Delphi).
http://www.mp2kmag.com/mappoint/disc...pic.asp?t=3187