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It's not an issue unique to you Kiwis. Many regions are outdated as borders, names, and populations have changed over time.
UK: https://steamcommunity.com/discussions/forum/10/3421061982944312451/
Ukraine: https://steamcommunity.com/discussions/forum/10/1651043320652324075/
Finland: https://www.reddit.com/r/Steam/comments/6dt3vj/steam_missing_a_city_in_profile_options/
Norway: https://steamcommunity.com/discussions/forum/1/496881136928058858/
It's not something that is detrimental to the operations of Steam and it's just a vanity for the profile. With that in mind, the priority to update the list is most likely pretty low. I would rather they fixed the sort so that it was all alphabetical. At least that way it would be easier to realize your city/state/region isn't represented.
New Zealand's is unique in that the list on Steam was never correct. Somebody saw a list of Cities, Boroughs and Counties from the late 80s, assumed incorrectly that Counties contained Cities and Boroughs (they did not, Counties were the other areas, as well as Cities etc). So we have this list of only tiny rural areas from 40 years ago.
Over 70% of New Zealanders can't find an option in the list to represent them. The 2 million people (of 5 million) who live in the three biggest cities cannot find an option to represent them.
If it means that much to you write your location under summary on your profile.
This is a feature that Valve have. They have a suggestion box. My suggestion is they make this feature not broken. And I am providing information about how it is broken in my region. Seems like an appropriate thing to post in this forum.
You created a thread so you it must mean something to you.
Secondly how long have people asked for an update?
And finally the point is simple. Write it on your profile rather than rely on Valve Time.
At least a decade that I know of. Does that mean we should stop asking?
This is the Suggestions thread, where people are supposed to suggest improvements to Steam. It's not Shoot Down People's Suggestions For No Good Reason subforum. What is your purpose here? To try and teach me a lesson for making a suggestion that you don't value? Does that mean it's not worth suggesting? What's the point of your argument? Thanks for keeping the thread bumped though.
It a "discussion" forum for suggestions hence why i and rawWwRrr contributed to the thread and gave you answers you did not want to hear.
The reality is you acknowledged it is at least decade so how is it exactly shooting down a suggestion which has not been on Valve's priority list for that decade.
Suggestions are after all please consider this and this has been suggested numerous times over that decade.