i think you need to define "bad country" -- the term is a bit ambiguous. any nation can be a "bad country" if you look for a specific issue -- however that may be different than a government that is outside international law (for example north korea would come to mind)
I was ambiguous on purpose, I was hoping to see how people would define it.
In my case, there is a country whose country code top level domain is very appealing for my company. But it's an oppressive and totalitarian regime - it's not a country I want to be associated with, although 99.99% of people would never even know what country the domain name belongs to.
i would say to you that this is as much a question of ethics as branding -- do you want your brand to be linked to something negative? my feeling is also if you see this connection as negative you'll carry that feeling out with you and it will hurt you over the long term. i'm also guessing that you're making a classic entrepreneur starting mistake of falling in love with the name of a domain rather than focusing on a product that's great