To clarify, I agree that there is not a reliable way to know where visitors/customers come from over the Internet. IP is a distributed protocol and there are a myriad of routing and proxying technologies that make geolocation unreliable. The issue at hand is Terms of Service compliance.
I worked closely with a lawyer to make these ToS as open as possible. I personally told him that I’d like every computer in the world to have a copy of Island Forge. Unfortunately, that is simply not advisable. I will explain some of what I have learned, regarding the business/legal side of starting an independent game company.
I am not a lawyer, but this is how I understand the US residency stipulation (which was created by a lawyer): By agreeing to our Terms of Service, we protect ourselves from being pulling us into international legal cases. I have learned that these types of agreements are largely about risk management. We’re a small operation, and we cannot risk putting a product onto the global market that might not be acceptable in all locations. Large corporations spend lots of money to make their products acceptable in various countries. We must focus on getting Island Forge off the ground as best we can.
While I personally, technically, and philosophically believe in the Internet as a global resource, market and legal jurisdictions are not (yet) global. These are some of the hardest parts about trying to become a legitimate independent game development business. I hope the gaming community can appreciate that we are trying to be as open as possible with our ToS.
(By the way, thank you for expressing how you feel about these issues. In the future, we hope to be able to improve our international accessibility.)