Why does Google Answers use a little known or understood time zone PST
 instead of the much more well known and respected GMT?
Where is PST anyway, in relation to the rest of the world?

Dear kemlo-ga;

The Pacific Standard Time (PST) zone is located in the Western United
States
http://www.worldtimezone.com/time-usa1.htm

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Best regards;
Tutuzdad-ga

Because the Google company and its servers are in PST.   You will find
that eBay auctions also go by PST.  eBay is located in California as
well.

Personally, I think that leep's comment should be accepted as the answer.