That is not true at all, it may help a little but it will not fix it. I am back on BLOPS1 and the connection issues are still ridiculous with local only. BLOPS2 will improve over time as the first one did, but will never be right because they copy/pasted a system that didnt work properly in the first place.
i think its bigger then that.
i could be in a lobby filled with dutch players and the **** will still suck balls.
heck at times it even looks worst.
my worst game last night was when i was with my party full of dutch players and went up against another party with dutch players lol.
there where only like 4 randoms out of the 12.
It will not change a damn thing unless they also make sure the lobby they match together do not consist of people with a significant difference in their latency towards the host. I've had plenty of matches in BO2 where everyone in the lobby was from Finland like me, and there was still plenty of lag. People in the same country can connect to the internet in so many ways and have so many different setups, location is not a guaranteed solution.
I've raged my fair share about lag and also about playing against people from the countries you mentioned, while it's true that they do seem to almost consistently have the connection advantage over me, i've had nearly as bad experiences in lobbies where all of the players are from my country so i've come to realise that location is not the most important factor. We would be better off with a functional ping-based system, BO2 should have it, but it's just not working properly for some reason (maybe the notorius skillbased matchmaking is to blame, although i still cannot say for sure it exists). If a ping-based system worked properly, you should also get more local lobbies with it since distance does increase the latency.
And as ribl mentioned, having it as a search option will not always guarantee local lobbies since everyone will not use it. You cannot hardcode it to be used either if they want to keep selling the game world wide, in some areas people would have a hard time finding matches. The last time i used local only in BO1 was back in November 2012, in think there was 350k online at that time, and i got people from Mexico and Australia in the same damn lobby using it. It's either because of what ribl said, or due to Treyach's shotty coding that simply does not work.