As for market realities, it's a reality that they've offered this service worldwide. Hulu, Kindle, etc. have not. It's unrealistic to not expect a huge backlash against a service that's restricting itself to only those markets where they think they might make money. As some commenters have rightly indicated, losing the scrobbling ability of the whole wide world will inevitably degrade the service of the "special" ones. And trust me, I've already stopped feeding them information. Also, come end of March and I will take my business elsewhere.
I don't mind paying for a service. I do mind discrimination and senseless discrimination I mind even more.