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The problem is it makes me sad to think I have to change my multi-lingual site to multi-url-tld sites. Much more administration, checking of statistics, maintainance etc.
For the Americans it would be the equivalent of Google offering "search your state only" and 11% of searchers using that option. Could you imagine the number of new state specific hosted url's surfacing?
Internet is great at breaking down geographical boundaries, of offering the inward looking, nationalistic searchers options from far away. With the arrival of Google it even got nicely sorted and presented. However, if this option catches on, it will keep the inward looking inward looking.;)