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Merging those two factors is the trick I guess.
Werty; That's interesting about Matts comments at Pubcon. Thanks for the insight. Things change though, I wonder if they'll take a harder look at this hosting locations in the future.
If so, it'd be good to be prepared, if that can be done without betting the farm up front.
Au contrare mon capitaine! Even with current infrastructure, that level of granularity could be (and probably is to certain US gov agencies) provided on both the visitor and the host in real time. The difficulty lies in security, privacy, and cost issues.
It is absurd to suggest that local businesses host locally. Completely absurd.