Probably more like 600, even semi-popular games using server locking (like Blizzard's Heroes of the Storm) struggle to complete matchmaking in under 10 minutes for 10 players. Matchmaking is a complex and challenging problem. Constraining MM to both servers <80ms away and clients that are all within 80ms of said servers, barring players with slower connections from playing the game, is a great way to ensure your game will never have PUBG/Fortnite levels of popularity.
As a game developer I'd rather people be able to play the game at all and feel playable than they all have only The Optimal Competitive Experience of Getting Headshots 100% of the time, after 10 minute queue times, or nothing at all. I would also like people who live in places where they can afford a computer, an internet connection, and my game, to play my game, and not just the continental US and EU metropolitan areas. Vietnam, Thailand, China, India are huge markets for games even with questionable internet quality.
Thankfully, most game developers and I concur on this so we all have more games to play. Maybe a compromise would be to allow players to check an option to only match with high connection quality servers/players when queuing, but so few players would check this option that one who does will have a relatively astronomical queue time to the majority who won't.
edit: for the record, I believe most such games running an actual tournament will use ping restrictions (or just run a LAN). Many also allow dedicated hosts to post servers with their own restrictions and constraints on who can join the server. I think that's a fine compromise. CSP shouldn't harm the experience if the latency of all the players is low enough that the prediction is almost instantly overwritten with server-side truth.