why are they even bothering to region code them?
Because they werent suppose to!
The S-View system requires a fully authored standard DVD-Video project as input, with only a few restrictions:
1. Leave 200 MB free space on the disc (on Layer 0 of a dual layer title).
2. Do not enable CSS.
3. Do not set Region code.
4. Do not set parental levels.
5. Author the main feature as one continuous VTS, in MPEG 2.
6. Do not author angles.
7. Add a "Cinea Audio Track" as the last audio track for the title. "Cinea Audio Track" is a placeholder for watermarking data that the Cinea system generates. The content of this track is not important (the facility can use a track supplied by Cinea, or can generate their own). We can provide a Dolby Digital 128 kHz file (containing an audio test tone) 120 minutes in length, which is to be authored as the last audio under the entire feature.
http://www.cinea.com/fews.html