Although I know it can be a huge inconvenience, and I definitely feel your pain, as a publisher I have to tell you that we'd rather be able to offer titles with limited delivery than not offer titles at all.
We received the rights to produce the electronic version of Edward Wright's CLEA'S MOON. However, due to Ed's contracts for the print edition in the UK, we are not allowed to distribute there. Rest of the world, check. UK, no go. So folks in the UK can't buy our ebook version at Amazon, Powells, etc..
Our situation is a little different though. We aren't required to make that limitation for sales on our own site, just when we are using retailers such as Amazon. I don't even think Smashwords is an issue because they tend to have an open market. The big restriction on the publishers is that we cannot make the title available for a retailer located in your market.
Mind you, my authors aren't as heavily represented by a legal team the size of Noam's, but it's good to know that we don't necessarily have to keep titles from our readers. It's all a negotiation process.
Best,
Jay Hartman
Editor-In-Chief
Untreed Reads Publishing
http://www.untreedreads.com