That makes sense for things that are targeted at a particular audience, geography, etc. But television? They had to spend money to implement the blocking feature, and seemingly for no additional money they could let people in Europe watch. I'm not asking for special treatment. And I'm not interested in watching Sesame Street, but rather programs which are not offered for sale (I'd even pay $0.99 per episode, if I could).
As a side note, if you want services from a US embassy, you often have to join a days-long waiting list, and then pay rather high rates for the services. Contrary to popular belief, it's not a place you just walk into because you're a citizen and they do things for you. It's more like a state-owned Kinko's plus law office in a prison-like setting. I appreciate your point about your taxes paying for them, but you should know they aren't giving me anything for free in there.
PBS is not a government organization. It is a private non-profit organization that is free to do what it wants. In this case you have a classical problem. Developing quality programming has a fairly high fixed cost and low marginal costs. Yes, they could cheaply give it to you, but if they did then they would lower the incentive for non-US organizations to absorb some of the fixed costs.
The fact that they do not sell it to individuals who want it is a sign that they are missing a great business opportunity. It is stupid. But again it is not government stupidity. (And for the cost of an EC2 instance to use as a proxy, you can get around the geographic restriction.)
And what about the tax money? Tax money that goes to PBS stations largely goes to the geographical problem of supporting local PBS stations in locations that do not have a sufficient donation base to pay for it themselves.