If you were only permitted to play for the region where you lived, then yes, that would be fine. That wasn"t the case - people could, basically, choose which region to represent regardless of where they lived.
I wish, but this wasn"t. People had to play of where they lived or been born. This was why suddenly a few people had to leave the teams they used to play for and had known people and had to built a team Europe, which is a huge region but not many players. Unfortunately I did not know any of this region, and most of them had the same prob, and most of them therefor not cared and could not bother to appear after a few games (started after the 2nd game). So region is not everything.
I think it is fine to choose a region of regardless where you live, but as I and others said before limit the amount of players, and if there are regions with lots of players just make more teams of this reason. Like 30 - 40 players a team, and than have Scotland A, B, C, D and so on.
I like the thought though of what someone has posted earlier, where you live, have been born or owned a sheep, lol within second i would buy me a sheep in the east midlands