That's a bit vague isn't it? Certainly that does not mean putting something guaranteed even in the same data center, let alone the same rack.
i used to think this way, and then i tried it, and i have to admit it's pretty good.
think of all the complexity on the other side of running a stable multi-regional database: networking, disk failure, routing, caching. all of that is negated. so yes, there is some latency, but not as much as you think, and honestly, i'd make the trade again in a heartbeat.