When it comes to FFXI, SE seems to operate with such an overabundance of caution that they end up hurting themselves far more than if they simply threw caution to the wind and accepted a little risk. It's called cutting off one's nose to spite one's face. The devs are often guilty of it when it comes to in game content and it seems the business side is as well.
Chargebacks happen, and are often perfectly justified. Even if not all of them are it's just a risk of doing business. A smart business understands that sometimes you have to lose out on a transaction here and there to come out better off in the long run.
People move about the planet and take their entertainment with them. That's reality. They aren't suddenly a risk to you simply because they changed their location, nor should they be punished for the actions of others in certain parts of the world.
And please, SE, don't lie to us and say that what you're doing is for the security of the customers. It's obvious you're only looking out for number one just like always. SE does what (they think) is good for SE first, and does what's good for the customers pretty much never.