Hey Dan,
Welcome back! Good to see you again.
Actually the problem is more insidious. In China, Google's street maps, while incredibly detailed, are intentionally offset by several blocks. Apparently it's due to some fee Google isn't paying, I don't know for sure. But the net result is that the street maps don't line up with the satellite imagery!
This feature attempts to correct for some of these offsets. It only affects countries where I collect this offset data, and currently that is just China (though there may be others). It's not a perfect solution, but it's better than nothing.
Each offset value has a range of effect, less than 200km. So you won't get any errors in America or any other country (and you can just turn the whole feature OFF as well).
If you see me talking about datums in relation to this feature, I'm referring to datum in the generic sense, i.e. "single piece of data", not a geodetic datum. Maybe I should pick a different term given the ambiguity

Proj4 looks pretty interesting.
How have you been? Working on any cool gps related projects? Any updates to MapATrek.com recently?
Cheers,
Will