The only time we have hosted another host they marked us down for location. They also stated that breakfast was 'simple but enjoyable'. This made me wonder what they offered for breakfast. Less choice than we do - extremely limited.
The review they left was favourable but marking us down for location is a real bug of mine. I know they did this because I always check my star ratings after each guest review and airbnb had flagged me for having the last 2 ratings at below 5*
Apparently my location is just fine and dandy now following my last few guests and, as I have two listings in my own home it amazes me that I can be flagged for location on one listing and praised for location on the other. They are in the same place for goodness sake.
So, in answer to the question would I offer a discount to another host, as it stands at the moment - No.