Yes, if that's the case, they should divide by talent not geography. It doesn't appear the geography of the games has any rhyme or reason (All North games are in Bel Air, while all South games are in HoCo for example), so why use geography as the criteria?
I don't know why they do it that way but I think it is the general parameters that are used. HoCo and Hero's white may be exceptions but it generally breaks down along geographical lines.
