I am trying to determine whether or not the stats for our Adword campaign will be wiped out if I start playing with our target locations.
To be honest, I don't know if it does... but I would be surprised if it didn't. If Google is trying to predict performance for a keyword, ad and URL, isn't the targeting of that keyword and ad an incredibly important driver of this?
Theoretically, if you're tightening your targeting - your history should be updated as an increase, I'd imagine...