There are pros to the current system. That said, part of the issue you flag is just perception. It's like going with a financial services firm that has a Wall

There are pros to the current system. That said, part of the issue you flag is just perception. It's like going with a financial services firm that has a Wall Street or "Fifth Avenue" address in New York City versus a firm that has an address in Hoboken, New Jersey. Both might be fine but we often attach significance to an address (even if its just a mailbox). To your last point, I think its ultimately good that (many) Country restricted TLDs have geographic restrictions.