I’d describe my level of understanding of this technology as marginally more than zero but surely this idea works on paper but could never work in the real world. Network latency is a highly unreliable metric when it comes to measuring physical distance. I suspect that the technological developments necessary to make this feasible will take longer to appear than a more sensible approach to global content distribution licensing. The current system mainly favors the studio lawyers who broker rights deals and I suspect its days are numbered.
Netflix itself, of course, couldn’t care less about content tourists. If it did, it would probably use address verification in its credit card payment interface: it’s very easy to activate and all credit cards include personalization data which include address, postcode and country. No, Netflix pays lip service to worrying about VPN/DNS services (the latter are, from experience, far superior) only to placate the lawyers whose cash cow’s days are numbered.