Content control geo fencing is only recent, and streaming was there and will continue to be there long after IP geofencing stops being a practice. In fact, I believe if the technology wasn't around, streaming would have been accessible to more people.
Any amateur "carder" (what credit card thieves call themselves) knows that IP geolocation is in fact good for them, because they can easily load up a proxy or VPN, making this arbitrary, problematic (read: tracking) factor in their favour to steal money and commit identity fraud. There are easily accessible programs online that provide ZIP code accurate IP proxies.
I can go on and on about how terrible IP Geolocation is for almost everyone.
But you did mention the motivation of geoip for detecting location for selecting a language, and given that's what people still do these days despite Accept-Language headers being available for most clients, I think it's worth a call out.
I'll also say that even though I invented IP location technology, I am an avid user of privacy-shielding VPNs. Just because you invent something doesn't mean you don't regret some of the uses of said thing.
Accept-Language headers aren't obviously the user's preference, though. There's the four users that manually set it, and for them it is their preference. Mostly everyone else is getting a default based on their OS language, which often isn't really something they set either.
There's also the problem where the country appropriate website for where you are may not have a language you understand.