I've been keeping tracks of IP numbers of connecting users to an online service that we are running for a number of years as we used to have huge problems with unauthorized access attempts before. We have a well defined region where our users live, but, surprisingly, every now and then some of them log in from an IP in some quite different corner of the world. Email traffic does of course differ from web access, but people travel a lot these days, for business, vacation or whatever, and I believe that blocking by country would eventually cause some valid mail to be lost.
/Rolf