It has recently been proposed that gravity-localized compactifications can generate the required gauge hierarchy without the need for hierarchically large extra space-time dimensions. In this paper, we show that gauge coupling unification arises naturally in such scenarios as a result of the anomaly induced by the rescaling of the wavefunctions of the brane fields. Thus, "anomaly-induced" gauge coupling unification can easily explain the apparent low-energy gauge couplings in gravity-localized compactifications. However, we also point out a number of phenomenological difficulties with such compactifications, including an inability to accommodate the GUT scale and the electroweak scale simultaneously. We also show that brane/bulk couplings in this scenario are generically too small to be phenomenologically relevant. Finally, we speculate on possible resolutions to these puzzles.