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shold every software that is installed in linux be installed in the same location i.e. /usr/local/src
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No.
There are a multitude of reasons why but I'll try to list a few simple reasons.
Files that are a part of your core system are placed in locations that are pretty much a standard across all distro's and vary only slightly.
These are locations that a user normally has no need to access which gives a lessor chance of "accidents" happening.
Files installed to /usr/local are in a "prison" so to speak.
The core system does not access them and vice versa unless specifically instructed to do so making an installation there safer for the core system;
barring malicious code of course but then again, you the installer have not done your own job of helping to keep yourself safe if this happens.
Installs to /usr/local aren't normally updated or upgraded either unless specifically instructed to do so.
/usr/local is a "prison' that you are able to access and utilize the "prisoners" at your discretion with hopefully very little fear of retribution.
/usr/local is also a standard across all distro's for installing add-ons outside a users repository, therefore, source developed by those without malicious intent will normally direct the code to install there unless otherwise specified by the person doing the installing.
That's about as simple as I know how to make the answer and still have it understandable.
