Most connections are routed through the United States. If there is one region that doesn't need that kind of granularity it is the USA.
If you live in NYC and get a server in LA, it's unlikely to have low latency. The US is the biggest single market for Valve's products (I assume), and as such, surely it can get a little extra attention :)
The idea is to pare down the list of servers you query, making the process much, much quicker and simpler as well as giving you a much better chance of finding a local, low-ping server.
Country codes (US, DE, NL, SG etc) make a lot more sense than numbers which the server admins would have to remember. And it's been a much better determinant of region than anything else over the past few years.
I agree.
-- Eric (the Deacon remix)
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