Nice writeup, tho I generally don't value location that much, since...
And they admit the operation is becoming more and more effective as time goes on (you can learn more about the history of the "eyes" here [archive]). What does it mean for the people, though? Choosing a provider from a supposedly privacy-respecting country does not help avoid surveillance - many of them are apart of the fourteen eyes and even if they aren't, they might still cooperate with foreign intelligence. I mean that's exactly what Iceland (non-14 eyes) did during the Silk Road investigation (archive). They've literally let USA agents in to do whatever they wanted. Therefore, in the end, you shouldn't focus too much on the country issue (just assume they're all in it together anyway), but instead on the provider's actual policies, history and trustworthiness. That plus using encryption, a VPN and good OPSEC should protect you from surveillance way better than falling for red herrings like the service's location.