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The problem with geographic restrictions, as is true of DRM generally, is that they penalize honest readers but do nothing to stop piracy. Once something has been digitized, there's really no way to guarantee that it won't get out on the web, and there is no technological solution that doesn't break the Internet (which is what the whole SOPA row in the US is about).
As an example, I recently was looking for a particular book that is not yet available in my country in either print or electronic form. I could order a paper copy from overseas and wait a week or two to get it, but the e-book version was completely unavailable to me--at least legally.
You see, after spending five minutes on Google I could have downloaded a pirated copy from half a dozen sites, but because I believe in paying writers for their work, I didn't want to go that route. After considerable effort, I finally located a reputable bookshop in a third country that apparently hadn't implemented IP address filtering and was willing to sell it to me as an EPUB.
My point here is that I was trying to give the publishers, the booksellers, and ultimately the author my money, and the current state of affairs made it almost impossible to do so. When companies make it easier for potential customers to download an illegal copy rather than to purchase their products legally, it's probably time for them to re-evaluate their business model, because it's going to be unsustainable in the long term.
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