I just tried that locator and it looks like it is working normally.
1) Entering Pasadena
The address "Pasadena" is sent to Google. They decide what Pasadena means and translates it to a lat/long. Pasadena CA is likely the most popular result and thus that is what they decide you meant.
The home pin then drops on the goegraphic center of Pasadena, CA. This is the correct behavior.
The locations of your stores within 10,000 miles of Pasadena CA are returned. This is also correct.
The map then renders with a big enough bounding box to show Pasadena CA (the home pin) and the locations that were returned. It then uses your zoom adjust to zoom a little further out.
This is all normal.
2) I put in TX
The map puts a home pin in the center of Texas. It shows all the locations and zooms in showing primary the state of TX.
I'm not sure what you are expecting but it looks perfectly normal to me based on how the product is designed. If you can explain how you think it should behave it may make for some new features in later releases. Keep in mind that search will remain "radius-centric" for the next few months at least, possible forever depending which features the user base wants more. Territorial (i.e. show only stores in state X) results have been mentioned but are lower on the priority list than several other items.