I used to be product manager of a popular online dating site serving the German-speaking countries in Europe. I and my team were in New York, the developers were in the UK, and who knows where the servers were. Safe Harbor made it very easy for us to work this way, but if we had to locate the servers locally today I don't think that would be a big deal.

It didn't matter to us where the data was, and for that reason I don't think it's going to make a difference to customers either. You have safe harbor because the organization gives a shit about keeping the data safe, not because a regulation makes it so.