I think it needs to be said, blatant and obvious racism should never be defended. I understand the goals in trying to find some loophole to excuse horrible, detestable Americans doing what so many do. But that's not really ethical. Racism is always wrong, it's not appropriate to attempt to hide it or excuse it. I realize that racism is often pointed to in cases where it clearly doesn't exist. But this is a well known, inexcusable bit of racism (it happens to Europeans too, btw, it's not only about skin colour but also national identify, language, culture...) for which there is no viable, ethical (or in many cases legal) reason. Blocking real customers makes no business sense. Geo IP blocks provide no security, but do lose business. There are no regulations, security or business cases that I've ever had presented that would allow or excuse any level of geo blocking let alone broad blocking.
This is racism. That's black and white. THe question is only... why is it so okay to allow it?
I'll call out one company that lost a bit of business to it. xByte did this and flat out said they had no interest in customers that would ever travel outside the US and didn't care if it tarnished their reputation to appear to have failed as a technology company to anyone who did. They back peddled after losing customers and, more importantly, vendors, but we pointed out to them that it was STATED by their vendors that they were fired over blatant racism and while they claimed it not to be true, they offered no motivation to the contrary (and since none could exist, that makes sense.)