The CR guy can see which country I'm in because of my IP address. But I can block or hide my IP address from any internet Proxy Server (some hackers can actually have a different IP address display e.g. to show that they're in New York when they're actually in Poland!). So your GPS idea would not work - hackers would find a way around it.
Secondly, why on earth would Canon Inc. or any other consumer electronics manufacturer wish to sell a 'dumbed- down' product for more money in Europe than a superior one (in capabilities) in the USA for less money (as prices there are already cheaper even accounting for FX rates + local taxes)?
Apple Inc. does not have a British iPhone 5 that is inferior to a Norwegian (non-EU) iPhone 5, nor would they ever consider doing that to their product lines. Can you imagine an Australian iPad 3 have lower resolution than an American iPad3. The 1DX is the 1DX no matter where you buy it in the world, and that is how it should be.
To your first point. You are correct. I spend time in Germany and Nigeria for work, and when I'm using the internet there, I use a VPN to make it look like I'm originating in Miami, Florida. Works great. Having said that, the impetus here is for Canon... not the end user... to be exonerated from liability of paying EU tariffs. If a hacker bypasses a GPS (VERY DIFFICULT), then it's on the camera owner, not Canon.
To your second point. I am not suggesting a "dumbed down" product. I'm saying eliminate the 1Dc designation, and offer an "upgrade" to the 1Dx which would cost MUCH lower outside the EU due to the rules in Europe. Europeans already pay tons more for various foreign items and then VAT on top of that.
Finally, in no way am I suggesting that EU citizens should be given a lesser product.. only that the rest of the world could have a 4K Video camera upgrade capability for a LOT less money, while having the same capability in the EU would just be subject to existing, crazy, penalizing laws, and cost the equivalent of $5-6000 more. The point being that EU citizens and organizations should be fighting THEIR penalties and not subjecting the rest of the world to their laws. In North America, we are NOT the EU, and shouldn't be subject to EU nonsense.