In case its not already obvious, most Geo-IP data is not particularly correct. In my experience its often off by 50-100 miles, and lucky if it even says the correct city. I've actually had Google say my IPs were in Singapore, when they were obviously not, and its a big pain to get Google to change that. Some of the other Geo-IP providers are better, but not by a whole lot in my experience.
If its also not obvious, most large TOR exit nodes are in datacenters and not in people's houses, for a variety of reasons.
I concur with your statements, as I've seen my own GeoIP resolve to someplace 3,000 miles away from my actual physical location.
Bravo for the data center mention as well.
As someone who lives in a rural area, without access to high-speed connections, the idea of running a home based server just doesn't make sense.
If its also not obvious, most large TOR exit nodes are in datacenters and not in people's houses, for a variety of reasons.