So? People don't really care where it is hosted as long as it is cheap and if it is good hosting the location doesn't really matter.
Some care, some don't. You would'nt get many hosting services selling in specific location otherwise. Although CDN is changing that.
Although I see where you are coming from, people (especially those from around the forums) really only care if the hosting service is located in places with loose laws. In other regards, latency and such don't really matter for a website all that much and prices shouldn't differ too greatly between, say, North America and Europe.