We need to consider a few factors.
If you are from EU, and you want GDPR to be enforced, you need to work with countries which follow your local law. The USA is hinting at no longer doing so, since it retaliates with sanctions.
Now, where would you host, and why? Norway seems like an interesting target, since they are very high on renewable energy. Norway isn't part of EU, but part of the EEA. Latency with Asian countries such as South Korea, Japan, and Australia isn't going to be ideal. But if the company behind it is from there, and they have a local presence in Europe, why not? Could even work with proprietary software. FOSS can help here.
Hardware is a difficult target. It is near impossible to avoid China in this regard. And if you do, you often end up with US products. OSHW can help, but it is rather uncommon. We also have a constraint: we need energy efficient in Europe.
It it's something public/political like a Lemmy/Mastodon instance, I would pick a foreign jurisdiction which is unlikely to enforce something like the UK's OSA or USA and EU sanctions... I don't know where it would be best, some country in the Balkans, maybe?
If it's a service (even commercial) meant to be used only by a few people that I have direct (personal or business) relationships, I'd just ask their preferences (and bias towards the cheapest jurisdiction for hosting).
If it's something B2C, hosting exclusively outside of Europe would probably just make things more difficult to me, so it'd probably be within the EU (Hetzner?)
You are definitely unusual.
Since remote work became more common because of Covid, remote workers have moved within the same city or moved to smaller cities. Only 4% relocated to rural areas[1].
Cities are appealing to most people because they have entertainment, variety, walkability, and many other benefits that rural places don't provide. The urbanization of America isn't only because work has changed, but because people generally prefer urban or suburban living over rural living.
1. https://pmc.ncbi.nlm.nih.gov/articles/PMC11551397/
> entertainment, variety, walkability, and many other benefits that rural places don't provide
I appreciate all of this as well, but at the end of the day, I moved to a city with 80x the population of my hometown because of a (specific) job. Rent is also significantly higher, and if I had to consume my savings to survive here, I'd surely move out. Entertainment and walkability have secondary importance compared to putting food on the table and saving for retirement.