Since, in the Infected lobbies, connection is such a big part of the game experience, I think being able to narrow the location down may be a little bit of help.

For example:
In a U.S. based lobby, a person from Australia joins.
Because of the location of this one player from Australia, everybody will suffer 'lag compensation'.
If narrowed down to location, connection will be less of an impact on the game.

It would be narrowed down by region pretty much.
-North America
-South America
-Europe
etc.