Per the FAQ on Keane's website, Keane's drummer Richard Hughes, stated the following:
"We've been asked whether "Somewhere Only We Know" is about a specific place, and Tim has been saying that, for him, or us as individuals, it might be about a geographical space, or a feeling; it can mean something individual to each person, and they can interpret it to a memory of theirs... It's perhaps more of a theme rather than a specific message... Feelings that may be universal, without necessarily being totally specific to us, or a place, or a time..."
With the nostalgic sentiment and the overall tone of the song, I think Keane is attempting to express a Portuguese term known as 'saudade', which does not have a direct English translation but roughly means "that which we remember because it is gone."
They say misery loves company
We could start a company and make misery
Frustrated, Incorporated
I know just what you need
I might just have the thing
I know what you'd pay to see
Put me out of my misery
I'd do it for you, would you do it for me?
We will always be busy making misery
We could build a factory
And make misery
We'll create the cure
We made the disease
Frustrated, Incorporated
Frustrated, Incorporated
I know just what you need
I might just have the thing
I know what you'd pay to feel
Put me out of my misery
All you suicide kings and you drama queens
Forever after happily, making misery
Now, did you satisfy your greed?
Get what you need?
Was it only envy?
So empty
Frustrated, Incorporated
Frustrated, Incorporated
Frustrated, Incorporated (put me out of my misery)
Frustrated, Incorporated (I'd do it for you, would you do it for me?)
Frustrated, Frustrated, Frustrated
He's sitting
We could start a company and make misery
Frustrated, Incorporated
I know just what you need
I might just have the thing
I know what you'd pay to see
Put me out of my misery
I'd do it for you, would you do it for me?
We will always be busy making misery
We could build a factory
And make misery
We'll create the cure
We made the disease
Frustrated, Incorporated
Frustrated, Incorporated
I know just what you need
I might just have the thing
I know what you'd pay to feel
Put me out of my misery
All you suicide kings and you drama queens
Forever after happily, making misery
Now, did you satisfy your greed?
Get what you need?
Was it only envy?
So empty
Frustrated, Incorporated
Frustrated, Incorporated
Frustrated, Incorporated (put me out of my misery)
Frustrated, Incorporated (I'd do it for you, would you do it for me?)
Frustrated, Frustrated, Frustrated
He's sitting
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Somewhere Only We Know
Keane
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Matt Paxton
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The man has pseudo-friends who constantly criticize his actions. They moralize him, "teach" him and advise him to make a significant change in his life, because the way he is and what he does is not what they say it should be. They may find his life lame or immoral. They hold themselves up as role models. The man replies that he will make his own choices and decisions and he does not agree to unconditionally make himself under the influence of questionable quality advice. He justifies this by saying that there is always someone for whom he will be important, no matter what he does and no matter what he is. Although it is not said directly, I read it as meaning that he will always be important to himself in every way and he will always have his own support.
"Everyone is different and maybe that's a good thing, but you exceeded that mark 1000 times" - I remember very well how sad the words I once heard (from my peers and it was in negative context) at school made me feel.

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Lets review;
"Frustrated, Incorporated" - Nirvana and the whole Grunge scene
"Well I know just what you need, I might just have the thing, I know what you'd pay to see" - Kurt
"We could build a factory and make misery, We'll create the cure; we made the disease" Grunge and the record industry
"Suicide kings and drama queens" - Kurt and Courtney
Put me out of my misery
All you suicide kings and you drama queens
Who will pay? its us the fans who pay for the music.
I always listened to this as a "love" song where I used to relate it to my ex girl friend who was always "making misery"
Damn after 20 years I realized the true meaning of the song. Well its just an example of how one can intepret these "miserable" songs to be miserable.