For sure! If I were running a more general and globally focused instance that would be a larger concern. I understand using a VPN in North America, but not so much from other countries. I guess my vision is that it's only really locals accessing the site for the most part. If someone is travelling out of the country, they can equivalently use a U.S. based VPN server.
I suppose my example of Arizona came across as the proposed bounds of my geoblock. I'd probably just say "North America" to avoid the issues of remote workers using a company VPN to access the site (please don't though, your company probably doesn't like that - the current version of lemmy is VERY bandwidth inefficient )
Also, consider that I can use one Geoblock for my signup page, and different, more permissive one for the login page which should make things a bit more reasonable.