Geo-blocking movies is like geo-blocking automobiles, and it makes about as much sense. Can you imagine a car dealer or rental agency telling you "sorry, your car won't work in the following geographic areas"? Geo-blocking is all about artificial scarcity, and if it was being done between US states it might even be treated as collusion. But since it's an international thing, the law says it's OK. Movie watchers beg to differ.
Thanks to the Internet, the world is now a very small place; when a movie is released, it's usually all over the world within hours, regardless of rights-holders wishes and fantasies to the contrary. So content owners can continue to tie the hands of companies like Netflix, and Netflix and the like have no choice but to honour the content owners' wishes. And the stricter the enforcement of geo-blocking is, the more Netflix users will resort to torrenting, or stop watching altogether. Either way, the industry is shooting itself in the foot - it has people willing to pay to watch a movie, and it's telling them to fuck off.
If cars were geo-blocked there would be a brisk business devoted to unblocking them, even though it might cost quite a bit of money. The equivalent for movie fans is a torrent site - except torrented movies can be had almost for free. I expect a rise in torrenting among non-geeks who would rather spend their money on legally obtained movies, if only someone would put out their hand and take it.