This setup is good if you are only serving people in a single continent. The TCP handshake with someone half way across the world is still going to eat all of your latency. You can’t beat the speed of light.
Most startups are going to be operating in a one country. And most requests would be handled by Cloudflare edge except for dynamic requests to the origin.
You might be surprised how fast it would be. And most companies blow their latency budget with 7 second redirects and touching 28 different microservices before returning a response.
All I am saying is don't get fixated on geo-latency issues. There is a bigger fish to fry.
But after all fish have been fried, you’re right. Servers on the edge would help.