I think you have a point, but using such an example makes you sound a snob western who divides the world in "countries I am fond of" and "countries I am not fond of".
Regarding your second paragraph, I think you may simply have a chip on your shoulder. My comfort with a German domain name is based on my knowledge that Germany's been a stable democracy for the last sixty years. I know very little about South America and am therefore more leery of domains backed by governments there.
I am quite fond of the UK and France, but given the curious libel and intellectual property legal environments of those two countries, respectively—yes, from my American and therefore evil, small-minded perspective—I wouldn't want to expose my business to those environment by using a registrar in the UK or France.
So sorry to not be the racist cultural-imperialist Europhile you'd like me to be.
And as I intended to say, I was agreeing with you: I would not trust my entire business to a .LY domaim, and do believe that .DE is more stable than, say, .SO. I was saying that the lack os research combined with the Germany/Colombia example was not the best way to defend your position, particularly in face of those who would probably consider it a cultural-imperialist one.
One of the things I've learned in my travels is that people are very good at identifying other people's (and other cultures') weaknesses and significantly less skilled at identifying their own. Mea culpa.
It's less of a west vs <insert government here> thing and more of an A vs B thing.