the question is, will limitating my campaign to ceratin language and countries decrease this min bid ($1) to something smaller which is ok for me?
I think (indeed, hope) that G may be penalising apparently-scattergun campaigns to make the "new and used dead popes" and egregious MFA ads less likely to be cost-effective for their perpetrators.
G's view may well be that it is unlikely that any one ad campaign can work well in all countries and in all languages (the average Mongolian's grasp of Basque may be as poor as mine for example, so a Basque ad ain't gonna run well everywhere), so failing to target better is one possible indication of desperation and low-grade ads.
Your situation may be entirely distinct, but in any case, the better you can target your ads the more likely you are to do well and make users, publishers and G happy with relevant ads.
So to answer your question: yes, I think so.
All IMHO of course!
Rgds
Damon
I target my site to my country and pay quite low .
I tried to broaden the appeal by adding some content for international surfers but could not reach any as PPC went too high.
Went back to my earlier strategy..