Definitely not the States or Middle/South America or Africa or Asia or Russia or the Stans.
So Europe. Suggest mainland rather than an island for those who, for whatever reason, prefer not to fly and like the ability to leave at any time without anyone else's permission.
Portugal hasn't been mentioned, though it has stunning beaches, legal Jah Weed, and is used to visitors.
I'm okay with any first world location. Somewhere near beaches or other tourist attractions (i.e. Paris) preferred.
I think you "anywhere but the US" guys are a little optimistic about the situation in most EU countries. Whatever you're afraid of the US government about, the EU is just as bad - a little better in some aspects, and a little worse in others.
I would choose MiddleEarth.