See my other answers, but briefly: no, they were not thinking about this, which is why we were raising it. I guess the counterintuitive point we were trying to get across is that with most things, the best way to keep it safe from being lost is to put it in a known place, and lock it away. But for data, the strategy -- for that scenario -- is to keep it in a lot of places, with heterogenous defense strategies. This is for data loss, of course, not access or surveillance or unlawful processing. But there is a cost as well as a benefit to deliberately limiting your options.

(I can feel someone saying "but surely having redundancy in one country is good enough, so I'll just say that I know relatively sane people who try to have hemispheric redundancy in their data, and also you never know when two different-in-every-quality-but one locations will suffer from the same disaster. Floods; heat-waves; national protests and strikes. It's surprising how often rare things happen!)

On your second point, it really is crazy. And also amazing that this is a capability that is -- or should be -- available to anyone in the world, not just in the US, and not just devs. Hopefully without also having to think about their data suddenly finding itself in a warzone.