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Nothing to do with Steam itself.
Some people in other Countries could have a lower ping than someone in yours. So listing Country wouldn't always = what you want.
There is also the fact not everyone has the same type of connection. Someone next door on a weaker internet connection could have a higher ping.
Years ago friends 2 doors down were on dialup and had 300+ pings. I had a 1/2 mb connection and got 70. People in various parts of Europe frequently had pings under 100ms.
Check the games settings as some offer a MAX accepted ping. That should help prevent getting grouped with higher ping players.
Some people in other countries could easily have better latency than you, and some servers in your country could have bad latency whereas others not in it have better latency. What you seem to hint at does not equate to reality.
I'm fine with players not being listed as to where they're from, it's no ones business.
Indeed.
If the point of this is to estimate ping, getting the actual ping data is (1) more accurate, and (2) less personally-identifying.
Where you are located is only slightly related to yoru ping, but it tells you almost nothing useful
Why not just get the game / server to display the actual, real latency ? - then you wouldn't need to estimate. It seems a really round about method to display the location to estimate latency.
Also, in many networked games, there may be interpolation and lag compensation - things do not always happen in real time or at the same time.
https://developer.valvesoftware.com/wiki/Source_Multiplayer_Networking